Financing 101 for first time home buyers in Cape Town

PUBLISHED 22 OCT 2018   

Financing 101 for first time home buyers in Cape Town

Buying your first home is a big deal - but financing it doesn’t have to be. Here’s our easy guide to financing for first time buyers.

Buying your first home in Cape Town is a big life event, and it’s easy to get overwhelmed with all the decisions that are involved. From finding the perfect home for you and your family, to negotiating a good price on Cape Realty, and getting approved for a bond, buying your first home can seem daunting - but it doesn’t have to be.

To help you on your journey to home ownership, we’ve put together a quick guide to financing for first time buyers. Here’s what you need to know before you sign your offer to purchase.

Buying a house is emotional - here's  to keep a level head

We spend a lot of time in our homes, enjoying our free time with family and friends and creating happy memories.

Maybe that’s the reason why buying a house is such an emotional decision - but it needs to make financial sense too.  

Here are some tips to keep in mind.

  • You need to feel totally comfortable in your new home - if anything about the property bothers you on the first viewing, it’ll definitely bother you long term.
  • Check out the area - does the suburb seem safe, welcoming and conveniently located?
  • Make sure you can afford your new home - that’s where property financing comes in.

Financing your home - what options do you have?

Most first home buyers finance their homes with a bond. You can apply for one through your bank, but you may not always get the best deal this way.

A bond originator (or home loan company) is the best place to start when you’re looking for property finance. They’ll shop around at different banks on your behalf to get you the best interest rate with the lowest deposit.

If you work in corporate South Africa, you could also take advantage of your company’s housing scheme to finance your home. Your HR department will have more information on this.

Still have questions about buying your first home? Ask us!

The Cape Realty team is on hand to answer any questions you have as you search for your first home.
Contact us
today and we’ll give you the advice you need.

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