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How 74% of applicants who want 100% bonds, get them

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Nearly half of all new home loan applications received by bond originator, ooba, are from buyers who have no access to a deposit, but 74% of these applicants are successful in their bid to secure 100% bonds

This is according to Kay Geldenhuys, property finance processing manager at ooba, who said the other 26% of applicants are required to raise a deposit of between 5% and 10% of the purchase price.

“Contrary to the widely held belief that the chances of getting 100% financing are slim, these stats prove that, when correctly represented, buyers have a very good chance of obtaining a bond without a deposit,” she said.

“Banks are willing to approve 100% bonds if they can see that you have a clean credit history and can comfortably afford the monthly repayment instalments. An experienced bond originator will ensure you are correctly represented to the financing institutions so that they view your application in a favourable light.It’s essential that these candidates evaluate their financial situation before applying for a bond.”

What a 10% deposit does to a R1m loanSaving with home deposit in mind

“If you purchase a R1m property with no deposit at a 10.25% interest rate, you will pay approximately R9,816 per month over 20 years,” she said, noting that homeowners would have paid back around R2,355,944. “On the other hand, with a R100,000 deposit, the monthly repayments will be approximately R8,835, and the total repayment will be around R2,120,350. Add the deposit to this and the total comes to R2,220,350, making the total repayments some R135,594 cheaper than buying without a deposit.”


Use ooba’s home loan deposit saving calculator to estimate how much you need to save (and for how long), in order to afford the deposit on your home loan.

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