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Types of Loans through Mortgage Plus
The leading banks usually offer various types of loans. At Mortgage Plus Bond Originators we will help you choose the one that best suits your needs and help you through the application process.
By: Mortgage Plus Bond Originators
The following are brief descriptions of the various types of loans available.
A loan granted to an applicant who uses the proceeds of a loan to purchase /acquire immovable property on which there are existing buildings and other fixtures or which is vacant land.
ORDINARY LOANS: FURTHER ADVANCE
Where the owner of fixed property that is already bonded as security for an existing loan requires further finance, the bank will grant a further advance subject to the value of the bonded property being adequate security for the increased loan amount. The client is normally allowed to use the amount of the further advance extended according to his own discretion.
A loan granted to an applicant to erect a building on a vacant stand (client applies for a full building package).
The loan is granted subject to a mortgage bond being registered in favour of the bank. After registration of the bond, the bank will advance monies to the client or his contractor as the building work is progressed (payment of funds is based on progress, e.g. land, foundations, roof height and finishes)
BUILDING LOANS: FURTHER ADVANCE
Where the owner of the fixed property that is already bonded as security for an existing loan requires finance to erect buildings, effect alterations, improvements or additions to the buildings already established on the immovable property. If the future value of the property when complete is adequate, the bank will be able to grant the further advance. The bank may advance the full amount immediately (depending on the security available against the mortgage bond), advance the amount as progress is made with the building operations, or may retain a portion subject to certain suspensive conditions. Where the margin between the loan account balance and the mortgage bond allows for such an advance to be made, the bank may do so. If the margin is insufficient, an additional mortgage bond will have to be registered.
Mortgage Plus Commercial fills a void in the market for clients who require funding for working capital, need to reduce their bank exposure or need to meet other short term requirements. This product has been designed to meet the requirements of clients who are asset-rich but in need of short-term liquidity. Mortgage Plus Commercial does not lend against vacant land, but rather against residential, office, industrial and retail properties.
The borrower must be a juristic person in terms of the National Credit Act
Maximum transaction value not to exceed 60% of valuation
Valuation of property to be done at client’s expense
Minimum advance of R 1 500 000 (no maximum)
A first bond is to be registered over the property
Maximum loan term of 12 months
Please contact us if you require any further information or would like to apply for finance:
011.327.4489 / 0861 1111 93
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Mortgage Plus Bond Originators specialises in Mortgages, Bonds, New Home Loans, Building Loans, Further Loans, Bond Switches and Debt Consolidation Home Loans, Personal Loans and Insurance in South Africa.
We will find the right deal for you.Guaranteed!