Overseas Finance

Property Finance in South Africa

Overseas Mortgages Direct's Guide to Property Finance in South Africa.

At a glance:

	Mortgage	Refinance	Equity Release	Buy to Let
Maximum Loan to Value	50%	50%	N/A	N/A
Maximum Interest only period	0	0	N/A	N/A
Maximum term	20 years	20 years	N/A	N/A
Maximum age on completion	90	90	N/A	N/A
Average interest rates	9.95%	9.95%	N/A	N/A
Average monthly price per thousand	8.67	8.67	N/A	N/A

Process:
Mortgages in South Africa are quite slow and not very competitive. With interest rates over 10% , terms up to 20 years and a restriction on LTVs to 50%.

Approximate timelines (weekends not included):

1.	Approval in principle	Instant
2.	Final licenses	Day 1
3.	Property registration details	Day 1
4.	Application (receipt of documents)	Day 1
5.	Power of attorney	Day 1
6.	Confirmation of approval in principle	Day 8
7.	Valuation	Day 15
8.	Formal offer	Day 25
9.	Arrange signing	Day 30
10.	Signing	Day 35
11.	Transfer of deeds	Day 35
12.	Payment to developer	Day 35
13.	Agency of service	Day 36
14.	First mortgage payment	Day 36
15.	Commission received	Day 65

Costs:
For guidance purposes, as costs vary from lender to lender:

Cost	Amount	Payable
Application / bank fees	€200	Up front
Valuation fee	€500	Up front (refundable)
Opening Commissions	1% of loan amount	On signing
Registry / Notary fees	1.25% of purchase price	On signing
Agency of service	€120	Annually on signing date

Currencies:
Mortgages in South Africa are available currently in Euros and Rand.

Source: Overseas Mortgages Direct