What homebuyers should be thinking about

In recent months, interest rates have gradually begun rising and homebuyers are starting to wonder whether it is still worth investing in property as living and borrowing costs climb.

Today, the third interest-rate decision of the year by the SA Reserve Bank Monetary Policy Committee, has raised the prime lending rate once more. This delivers a reality check to the door of the residential property market that saw such a boom during the pandemic when interest rates dropped to historic lows.

With the prime lending rate rising 0.5% to 8.25% some homebuyers might be questioning whether their home dreams could still come true. ‘Understandable! But here at MortgageMax, we know the true value of owning a home is so much more than the purchase price you pay for it. So, our message to aspiring homebuyers would be not to give up on that dream of becoming a homeowner,’ says Jors van Niekerk, MortgageMax CEO.

Home loan affordability is one of the keys to successful homeownership, and never has this been more true than right now. The way to make sure that you can buy with confidence, is to apply for a home loan through a mortgage originator. By using the services of an established, experienced originator like MortgageMax, instead of approaching the banks on own steam, a homebuyer could gain a number of valuable advantages.

Homebuyers get:
1. Peace of mind that affordability has been verified by professionals who have done this work for decades;

2. Choice of home loan offers to choose from, without having to handle any of the stress or admin of shopping around;

3. Opportunity to select the very best home loan deal for their budget; and

4 .Confidence of knowing that the banks have put their best offers on the table because they know if an application comes via a mortgage originator they are competing against other banks and lending institutions.

Van Niekerk adds the other important factors to consider. ‘While we are no longer in an environment where economics and financials are as overwhelmingly favourable as they were in the last two years, the psychological aspects of homebuying have not changed one bit and they remain as important as ever,’ he explains.

Homeownership lets you:

• Provide a safe, stable and secure environment for your children and loved ones.
• Invest in your own and your loved ones’ financial future, rather than paying rent to a landlord.
• Control your living space by allowing you to decorate, modify, upgrade and renovate your home according to your needs and requirements.
• Own a paid-off home by the time you retire.
• Leave a legacy of homeownership for the people you love when you are no longer around to take care of them.

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