25 January 2018

Can I buy a house on my budget?

My Money Matters |

Let’s be honest, we all know what it feels like to have a budget stretched to its limits. Who hasn’t wished for a little more to spend – especially when you’re thinking of buying a house? And, since this is a massive investment, you need to be realistic about what you can and can’t afford. The last thing you want to do is get yourself in a situation where you can’t keep up you’re your payments.

However, while others are worrying about getting their bodies summer ready, you can get started on your own lifestyle change that will whip your budget into shape.

So, to help you make one of the biggest financial decisions you could make, we’ve compiled this flowchart to guide you through this process:

Graphic

What are the next steps to take?

  • Affordability calculator:

If you’re unsure of what you can and can’t afford we’ve got you covered with our affordability calculator – it not only takes your salary and expenses into consideration but also your deposit amount, repayment term and interest rate.

Read more about how we assess your affordability, here: https://blog.absa.co.za/know-your-affordability/

  • Debt control:

We understand that sometimes your life and finances can spiral out of control with bad debt as a result. Before you can start looking for that dream house, it’s a good idea to rehabilitate your finances and get your debt under control – let us help you. Visit our website to find out more.

For the record – here’s everything you need to know about your credit record: https://blog.absa.co.za/record-everything-know-credit-record/

  • Savings options:

Once you’ve cleared that budget-draining debt, it’s time to start saving. When you choose us, you’ll have many customised savings options available, including:

  • Depositor Plus: With this option, you’ll start off with a minimum amount of R15 000 and the more money you save, the more interest you’ll earn.
  • Target Save: This is a short-term savings option where you can save a minimum of R100 a month.
  • Dynamic Fixed Deposit: Not only can you choose the deposit amount and the investment term, but you also decide how much money you want access to.

If you want to know more about these options, or take a look at the other options that are available, visit our website for more info.

  • Absa Home loans:

When it comes to finding a home loan that fits your budget, we have many options for you to explore. From earning cash back while you’re paying off your loan, getting help from family members, to investment options and everything in between. This includes options such as:

  • Family Springboard: This option allows your family members to assist you with your deposit, whilst the funds they provide are held in a fixed deposit account – where they earn interest. Essentially, your family can put down the 10% deposit and stand as surety for you.
  • Loyalty Home Loan: If you’re an existing Absa customer, you can enjoy flexible repayment options, reduced initiation fees, and cash back.
  • Further Advance: Has your property increased in value? You have the option of increasing your home loan to pay for renovations, home improvements, education, etc. with this offering.

Check out our website for all of the information you need to learn more about these make an informed home loan decision.

Disclaimer: The advice contained on this blog is for general purposes only and does not take into account individual circumstances, objectives or financial needs. Accordingly, readers are advised to seek appropriate advice from licensed professionals prior to making any investment, or taking up a financial product or service.

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