Obtaining the best advice and rates for property finance is a key element when purchasing property.
Just one small challenge for foreign purchasers is the differing descriptive terms such as a bond or mortgage, prime and access bonds. The main criteria for our foreign purchaser however remains obtaining the right advice, best interest rates and terms and conditions.
Obtaining Property Finance as a Foreigner
Incompass Bonds specialises in obtaining property finance for foreigners wishing to purchase a property in South Africa, or to re finance an existing property in South Africa.
South Africa has regulations that cover both exchange control (this dictates what non residents or citizens can and cannot borrow) as well as a National Credit Act that governs the lending of money.
Incompass Bonds are experts in obtaining property finance (bonds) for foreign purchasers and non residents. They have forged close relationships with all the major banks and are able to negotiate on your behalf the best current market deals.
How much can a Non Resident or Citizen borrow
The governing regulations dictate you may obtain property finance up to 50% of the value of your home. Therefore, if you were purchasing a property for R2, 000,000 you may borrow R1, 000,000.
Incompass Bonds has successfully negotiated property finance for its clients that exceed this 50% limit and welcomes individual enquires as to whether they may be able to assist you.
Obtaining Property Finance – Where do you start?
Property finance should ideally be discussed before any offer is made to purchase a property. This allows for the correct advice to be given in terms of:
- Amounts that can be borrowed
- Likely repayments
- The most appropriate type of bond – fixed, variable, etc.
- Whether an access bond is appropriate (for more information on access bonds please click here)
However, Incompass Bonds can provide their property finance services even if you have found the right property but need professional advice on the financing.
For more information on Property Finance, please use the links below
What is a Bond? – Information on what a bond is.
What are access bonds? – Learn about access bonds and their flexible features.
Taking out a bond when you don’t need to? – Combinations of change control, consumer credit regulations and the potential need for flexible, competitive credit lines can mean a bond should be arranged even if not required to finance a property purchase.
Financing the purchase of a Guesthouse – For clients thinking of buying a guesthouse or releasing some capital.