Home Loans

How To Get A Home Loan If On ITC

Securing a home loan in South Africa is becoming increasingly difficult. The banks are tightening up their lending rules, which means to millions are unable to qualify for the finance they need to purchase a new home.

If you are currently listed on ITC, or with any of the other credit bureaus, we are going to find it very difficult to secure a home loan at the moment.

The best thing to take if you’re wondering how to get a home loan if your on ITC would be to take the steps needed to remove your bad credit listing.

A company called Lucid has been helping many South Africans to remove their bad listings and to improve their credit scores.

Visit: http://www.lucidliving.co.za

Alternatively you could look at rent to buy properties.

These properties are rented out by the owners, with an option for you as the buyer to purchase the house at a latter stage once the ITC credit listing has been removed and no longer reflects on your profile.

For more information about rent-to-buy house visit RentToBuyGuide.co.za

Home Loans For People On ITC

Home Loans For People On ITC

Is it possible to get home loans for people on ITC? The home loan market is very tight currently and while it is still possible to secure home loans up to the full purchase price of the property, the majority of applicants are still struggling to get any bond amount approved.

The banks are currently employing strict lending criteria, and your credit record is one thing that they are looking at very closely before granting any home loan amount.

Clients who are without a clean and clear credit rating, and those currently have an ITC listing on your report will find it very difficult to find a bank or any lender to finance the purchase of a new property.

If you are on ITC or if you have any other negative listing on your credit report, you first step to getting a home loan would be to get all your accounts paid up to date.

Thereafter, you will begin to rebuild your credit rating and the banks will then be very help to offer you the finance that you’ll need to secure your dream home.

Has Your Credit Record Affected Your Plans To Own A Home?

Having a poor credit rating or being listed on ITC doesn’t have to be the end of your plans to buy a home…

Many consumers and new home buyers are unaware of how their credit records and the way in which they manage their monthly credit accounts can impact on their chances of owning their own house.

Lets see how you credit rating can affect your plans to own your own property:

The introduction of the National Credit Act means that bank and other credit providers are forced to review your credit repayment history and your existing financial commitments as part of their home loan affordability assessments. They do this by obtaining your credit records from the various credit bureaus like, ITC and Experian.

While some buyers are aware that their credit rating will affect they chances of securing a home loan, most do not know to what extent their records can affect them.

All credit activity is recorded by the credit bureaus and an overall rating a giving to every credit active consumer in South Africa. This score drops when you either skip a payment or even when you delay your payment by one day.

But, having bad credit doesn’t have to be the end of your plans to purchase a home. While it may take some time, there are steps you can take to improve or repair your debt.

You will find the banks are more likely to grant you a loan at a great interest rate and at higher amount once you’ve built up a stronger credit rating.

How To Buy A House

How To Buy A House Even If You’re On ITC

Have you tried to apply for a home loan through the local banks? Have those banks declined your home loan application because you are blacklisted or because you have bad credit, due to a listing on your ITC credit record?

There is increasing demand from South Africans looking to secure home loans for blacklisted people, but there are still very few solutions available.

When trying to buy a house while on ITC you will find that more banks will require a letter that the account in question is either paid up already, or they are not likely to grant you the mortgage finance you need to buy a house.

Another solution for clients with bad credit is to look to secure rent to buy properties.
These properties are rented out by the owners, with an option for you as the buyer to purchase the house at a latter stage once the ITC credit listing has been removed and no longer reflects on your profile.

The benefit of these rent to buy houses are that some sellers are willing to offer you an option of using a portion of your monthly rental payments as a deposit on the purchase price of the house.

For more information about rent-to-buy house visit RentToBuyGuide.co.za

Bond Finance For Blacklisted People

Securing bond finance for blacklisted people can prove to be very challenging. The truth is that most banks are not keen on lending to clients with bad credit records. And, the ones that are willing for offer blacklisted loans are usually going to charge higher interest rates than an average home loan.

What are you options if your bank is not will to grant you the bond finance you’re looking for?

The first step would be to try to clear your name, and remove any ITC listings or blacklisting from your credit report. If you don’t already have one, get a copy of your credit report from ITC or credithealth.co.za and find the account that are giving you the negative ratings.

Sometimes, if you are able to produce paid up letters for those accounts, the banks would consider your home loan application far more considerably.

When compare to personal loans, home loan are particularly difficult to secure. Although the bond finance is backed and secure by the actual property, banks are currently more willing to grant short term loans.

Therefore, you might find it much easier to secure a short term blacklisted personal loan. You can then use the finance from your personal loan to settle an bad credit and outstanding debts.

Remember that the two major factors the banks with consider when considering your bond finance application is your credit record and your affordability.

If you apply for too many personal loans, you may find that you have too little disposable income after repaying the personal loan each month. For this reason it is important to speak to a financial advisor before applying for any further loans.

Another alternative to trying to secure bond finance when you’re blacklisted, is to try to buy the property without even using the bank.

Some developers are currently offering new homeowners Rent To Own agreements, that would allow you to rent the property for a period while also making payments towards owning the house eventually.