Interest Rate Cut You have to wait a while

Gill Marcus and The South African Reserve Bank have decided to keep interest rates on hold for a while Interest Rates will stay the same for th enext 2 months until the next meeting of the South African Reserve Bank.

Transfer Duties

The new transfer duty rate structure announced in the Budget 2011 by Pravin Gordhanwill apply to property sold in terms of purchase agreements concluded on or after 23 February 2011. This is good news for prospective Home Buyers as it will reduce the amount one has to borrow.

In Short, The first R600.000 is free of transfer duty. Below is a table of the rates applicable from 23 February 2011

So this will reduce your initial loan from the bank and interest repayments

Life Cover

2010 Has gone and 2011 is waiting for us. Hopefully it is going to be a good year for all of us. But the fact remains that accidents happen, people die. What if the inevitability happens to you as a breadwinner. How well are your loved ones look after. Will they be able to pay of oustanding debt, maintain the standard of living, afford the education of your kids.

Just ask your self the following question

Are you and your loved ones adequately protected should something happen to you? Are you paying too much for your existing life insurance? Now you can get ACCESSIBLE, AFFORDABLE, APPROPRIATE ASSURANCE with Term Life. Click Here

Repo Rate Reduced

The Reserve Bank’s monetary policy committee (MPC) elected to take 50 basis points off the key repo rate to 6% per annum – in line with most analyst and public’ expectations, and it is the lowest since 1974.

The cut was no suprise, given the positive data out of the second quarter, but the scope for interest rate cuts is getting narrower. I don’t think we’ll see another cut this year,” said Efficient Group economist Freddie Mitchell.

Marcus said the scope for further rates easing is “limited”, despite highlighting the strength of the local currency and the surprising weakness of price inflation and economic growth in her address.

She did, however, add that the MPC would continue to assess the situation.

Bridging Loans

A bridge loan is temporary financing for an individual or business until permanent financing can be obtained. Money from the new financing or permanent loan is generally used to “take out” (i.e. to pay back) the bridge loan, as well as other capitalization needs.

Bridging loans are normally more expensive than conventional financing/loans to make up for the additional risk of the loan. Bridge loans have a higher interest rate, points and other costs that are amortized over a shorter period.

Bridging Loans are very common in real estate transactions were certain costs or deposits are payable before a mortage kicks in

Some examples where a bridging loan might be used

A consumer is purchasing a new residence and plans to make a down payment with the proceeds from the sale of a currently owned home. The currently owned home will not close until after the close of the new residence. A bridge loan allows the buyer to take equity out of the current home and use it as down payment on the new residence, with the expectation that the current home will close within a short time frame and the bridge loan will be repaid.

A bridging loan can be used by a business to ensure continued smooth operation during a time when for example one senior partner wishes to leave whilst another wishes to continue the business. The bridging loan could be made based on the value of the company premises allowing funds to be raised via other sources for example a management buy in.

Allthough more expensive than conventional loans there is a market for these kind of high risk loans.

Saving money on your homeloan

How to reduce the term and the interest paid on your homeloan and improve your credit rating at the same time? It is easy pay more ? Sounds strange but by increasing your repayment on your loan every month you can shave of time of the duration of your homeloan and save interest at the same time.

Pay paying of more as the minimum you pay less in the end ?

Use this calculator below to calculate the effect of paying more.

Difference between a secured loan and an unsecured loan

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan. This is a form of insurance for the bank in case you default on your loan. They will be able to recover the loan by disposing of the assets.
A home loan is a secured loan, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

Another instance, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter — often corresponding to the useful life of the car and the rapidly depreciating value of the car.

Unsecured loans are loans without any kind of securiy in the forms of assets. These loans come in many different forms

• Credit Card Facilities
• Personal Loans
• Overdraft Facilities

Unsecured loans are often used to manage a short term cashflow need

Unsecured loans are generally more expensive as secured loans due to the higher risk to the lender

Get your own loan calculator on your site

How about displaying this loan calculator on your own site ?

Simply copy-and-paste the code snippet below into your pages, somewhere between the and the tags. The widget is free to use and distribute provided that the copyright notice and links are left intact.

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<script type="text/javascript">
mlcalc_default_calculator = 'loan_only';
mlcalc_currency_code = '';
mlcalc_amortization = 'year_nc';
mlcalc_purchase_price = '300,000';
mlcalc_down_payment = '10';
mlcalc_mortgage_term = '30';
mlcalc_interest_rate = '';
mlcalc_property_tax = '3,000';
mlcalc_property_insurance = '1,500';
mlcalc_pmi = '0.52';
mlcalc_loan_amount = '';
mlcalc_loan_term = '';
</script>
<script type="text/javascript">if(typeof jQuery == "undefined"){document.write(unescape("%3Cscript src='" + (document.location.protocol == 'https:' ? 'https:' : 'http:') + "//ajax.googleapis.com/ajax/libs/jquery/1.3.2/jquery.min.js' type='text/javascript'%3E%3C/script%3E"));mlcalc_jquery_noconflict=1;};</script><div style="font-weight:normal;font-size:9px;font-family:Tahoma;padding:0;margin:0;border:0;text-align:center;background:transparent;color:#EEEEEE;width:300px;text-align:right;padding-right:10px;" class="mlcalc_d3d3LmxvYW4tY2FsY3VsYXRvci5jby56YQ==" id="mlcalcWidgetHolder"><script type="text/javascript">document.write(unescape("%3Cscript src='" + (document.location.protocol == 'https:' ? 'https:' : 'http:') + "//www.mlcalc.com/widget-wide.js' type='text/javascript'%3E%3C/script%3E"));</script>Powered by <a href="http://www.loan-calculator.co.za/" style="font-weight:normal;font-size:9px;font-family:Tahoma;color:#EEEEEE;text-decoration:none;" class="panelItem">Homeloans</a> <a href="http://www.mlcalc.com/" style="font-weight:normal;font-size:9px;font-family:Tahoma;color:#EEEEEE;text-decoration:none;" class="panelItem secondaryLink">Mortgage Calculator</a></div>
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