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Owning a home is not a distant dream. With a home loan, you can make this dream a reality. Banks have been more willing to grant home loans in recent times due to competition between banks and increasing demand.

But how do you finance the home loan? It turns out you have a range of options. We provide an overview:

Options for financing home loans in South Africa

1. Get a guarantor.
2. Use a home loan comparison service.
3. Apply to FLISP, a government programme aimed at low-income buyers

Option A: Get a guarantor

If you’re unsure whether you can secure a home loan based on your own income, you can approach a family member to act as a guarantor.

The days of the benchmark interest rate LIBOR are numbered: According to the UK banking regulator, the London Interbank Offered Rate will be replaced by the end of 2021. A change that finance, investment and risk managers naturally follow closely. But it's not just for operations, CIOs also face the question of how to absorb the impact of a necessary system migration. In any case, the end of LIBOR will not be cheap – neither operationally nor technologically. This is precisely why some smart investment decisions from IT management are needed now.

By Christine Bazanowski Scaffidi, Senior Principal Product Manager at Finastra

T he crucial news right from the start: According to our research, we assume that the discontinuation of the British LIBOR and the accompanying switch to risk-free interest rates (RFR) will cost the financial industry more than 8 billion US dollars globally. A number that resonates – and describes losses that no one can use, especially in the current situation. It is therefore all the more important to approach the migration from LIBOR to alternative rating concepts both operationally and technically with system and expertise.

Sooner or later, building owners in particular will be confronted with the term "cubature". With the cubature calculation it concerns a measuring method, with which the converted area of real estates is determined. Because often the indication of the pure living space is insufficient: While this reflects only a two-dimensional value, the cubature indicates the volume of the real estate and thus a three-dimensional value.

Definition: What is the cubature?

The term "cubature" is derived from the Latin word for cube (cube). With the cubature you can calculate the enclosed space of real estate in cubic meters. The basis for this is, in simplified terms, the formula "length x width x height", from which the spatial volume of the building is derived in the end. In contrast to the calculation of living space, which is based only on "length x width", the ceiling heights are also taken into account here, among other things. Based on the cubature, for example, the energy efficiency of the building can be evaluated. Also the value of the real estate can be determined on the basis this value more exactly than for instance over the pure floor space.

The cubature is used, among others, in architecture, construction and real estate valuation. The term is also used in restoration, but here it refers less to volume calculation and more to the faithful reproduction of a demolished or historic building.

Life can throw a curveball at any time, and hence you must have an emergency cushion to help you tide over. Whether you require a small or a considerable amount of funds, you can drop short of cash. Thanks to online lending, you can avail yourself of money whenever you need it.

Online lending is not a new thing, and however, it has made people’s financial lives far better because they can borrow money during financial emergencies.

Various direct lenders are offering the same types of financial products, and therefore it becomes very challenging for you to identify the right kind of online lender. Although all lenders advertise their products at affordable interest rates, you should be very careful while choosing the lender.

The repayment calculator will show you what repayment rate you can use to pay off your loan and how quickly. For this, you just enter some key data of your construction financing and see how the loan conditions could change depending on the combination. The higher the repayment rate, the faster you will repay your loan. And the faster your remaining debt is reduced.

This is how the repayment calculator works

To understand how the amortization calculator works, you should first look at the amortization itself: It provides that you repay a fixed installment every month (or every three, six or twelve months) at a fixed interest rate. This means that over the years the share of the actual repayment in this installment increases. The smaller the sum to be repaid, the more the sum of interest is reduced – even if the interest rate remains the same. You can try out several variants with the calculator: If different credit institutions have offered you different interest rates?

Enter the loan amount and the respective interest rate, the desired amount of the fixed interest period and the planned amount of the initial repayment. This is how you can see how the term changes with the different interest rates. The same applies if you change the amount of repayment with a fixed interest rate. As a result, you will be shown your complete repayment schedule including the respective remaining debt. Further calculation options for your real estate loan are also offered by our financing calculator.

Due to complex circumstances that are developing in the world, mobilization questions are becoming more popular. In particular, many issues occur most often with men who are in camp and with people of early age. In particular, many are interested in the mobilization ordinance. What is the? To whom and for what purpose it is issued?

General concept of the mobilization order

Due to their ignorance many Russians start to panic and fill the thematic forums, friends and acquaintances with questions when they receive the mobilization order. Their panic is mostly connected with military actions, which are currently taking place in a neighboring country – Ukraine. The press, social networks and other "well-wishers" add fire to the fire. For example, recently residents of Cherepovets district and Cherepovets were victims of panic, and received similar notifications. So, the mobilization prescription: what is it?

Currently, one hears again and again about old-age poverty and low pensions. Due to the uncertainty of the situation in retirement age, young people in particular need to make provisions in good time. Will the payments into the pension fund be sufficient? Or should you just take the money to the bank?

In addition to a variety of possible hedges, it is also very popular to purchase a property in order to be able to live rent-free in the already paid-off house later on. But is it really so simple?

There can be no universal answer to this question, because many criteria have to be considered. It depends above all also on the personal financial situation. To help you make the right decision for yourself, we present below the points you need to think about and try to answer the question for you whether a property is worthwhile as a retirement provision.

In the Swiss mortgage market, the trend towards long terms is increasing, as the current Comparis Mortgage Barometer shows. Many property owners protect themselves from distortions in the capital markets by switching to fixed-rate mortgages.

The indicative rates of long-term fixed-rate mortgages have risen significantly since the beginning of the year. This is shown by data from HypoPlus, the mortgage specialist of the Comparis Group. "Inflation and the possible impact of the war in Ukraine on central bank decisions in the U.S. and the EU are currently worrying many property owners. They protect themselves from distortions on the capital markets by switching to fixed mortgages," observes Comparis financial expert Leo Hug. Remarkable is the demand for 15-year mortgages, which has hardly been seen in recent years. In his opinion, the newly emerging mortgage offers without the clause of a prepayment penalty have probably also contributed to the increased demand.

Central banks in a dilemma

Persistently rising commodity prices lead to higher inflation expectations. According to Comparis, this causes an upward pressure on mortgage rates in the mortgage market, especially in the long maturities. The U.S. Federal Reserve (Fed) and the European Central Bank (ECB) will have to fight inflation by raising interest rates, explains Hug. However, due to the Ukraine war, economic growth is also expected to cool down. Raising interest rates too quickly could stall economic growth. In his view, central banks are in a new phase of their permanent balancing act.

Rescheduling your old loan to a new one will save you unnecessary costs and help you get an overview of your finances. Due to the decrease in the interest rate, you can be sure that you will be left with lower expenses than before when you reschedule your debt. You can find out how this works and what you need to do in our guidebook.

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Representative example according to § 6a Abs. 4 PAngV: Net loan amount 6.000,00 €, annual percentage rate of charge 4,990 %, fixed borrowing rate 4,883 % p.a., Term 48 months, 48 monthly installments of 137,84 €, total amount 6.616,32 €.

Credit conditions: Details acc. § 6a PAngV: Unchangeable debit interest rate from 3,92%, effective annual interest rate min 3,99% – max 15,99%, net loan amount from 100,- to 250.000,- €, term from 12 to 120 months, creditworthiness provided. For a net loan amount of 10.000,- € and a term of 36 months, 2/3 of the customers of Maxda or Finanzcheck will presumably receive an eff. Interest rate of 8.90% or lower (geb. Debit interest rate 5.26%).

While Germans tremble before the Schufa for credit inquiries, Austrian credit applicants are afraid of the data of the KSV – the credit protection association of 1870, the equivalent of the Schufa in Germany. The Creditor Protection Association, based in Vienna, specializes in credit checks, monitoring (credit monitoring) collection services and insolvency representation in Austria. Austrian providers obtain their information about loan applicants from KSV or similar institutions to check the creditworthiness of the applicant.

Negative KSV entries can hinder the granting of a loan and increase the interest on the loan

It is not easy to get a loan if you have a poor credit rating.

Individuals who are in debt due to previous payment difficulties (e.g.B. Cell phone contracts, bankruptcy, etc.) could not pay their bills, are listed in the credit protection association or similar files – and have difficulties to get a credit in the present due to this data. Even if the entries are already years ago and in the meantime more than enough money is available.