A question we receive often is whether there are ways and means of securing home loans for blacklisted people in South Africa. The short and simple answer is YES, but it will take a little extra effort on your behalf to secure these types of mortgages.
Most lenders and banks are not likely to look very favorably on any home loan application that involves an applicant with bad credit records or a blacklisting.
In the current financial climate the banks are looking to reduce their risk when lending money to their clients. Blacklisted clients represent some of the most high risk clients for the bank.
The first step to getting a home loans for blacklisted people is to speak to the bank’s personal financial consultants. You need to assess how much you can afford to spend on a home loan every month before committing to any more large debts.
A home loan is one of the biggest investments you will ever have to make, and it would be wise to first consider all your options.
There are a number of financial institutions that focus on supplying home loans for blacklisted clients.
These companies are much more accommodating than the usual banks, but there are some disadvantages. The interest rates offered by these types of lenders are usually very high, and they may require that your take out extra insurance to cover your bond amount.
Beware of private loan companies who are unauthorized lenders. These businesses promise easy access to finance, but place unrealistic repayment requirements in their contracts.
Debt consolidation loan for blacklisted client are considerably more easier to qualify for if you already own a property. These loans are granted by the banks based on the current market value of your property.
Alternative Options For Home Ownership
Another option would be to research Rent To Buy properties. Which allow you to rent the property you would like to purchase for a short period while you rebuild your credit status.