March 24, 2017

Personal debt consolidation loans

 
 
image

these are trying times and a lot of things can seem out of control. however, there are still things we can hold on to like keeping personal debt under control. as an personal customer, you can do this by managing your home loan account. introducing, the personal debt consolidation loans solution. please use the menu below to easily navigate through the various sections. personal is not affiliated with approved whatsoever. you should consult a financial adviser before performing debt consolidation.

debt consolidation takes can free up a lot of wasted money that is paid over because of high interest rate accounts. beware however, this does not mean you should take on more debt as this may result in having less options next time you decide to consolidate your debts.

personal debt consolidation loans navigation menu

how long can you extend the term of your home loan?

why would you want to extend the term of your home loan?

how do you fix the interest rate on your home loan?

what are the advantages of fixing the interest rate of your home loan?

what do you get by fixing the interest rate of your home loan?

what is fastforward?

how do you structure your accounts using multiplan?

why should you choose multiplan?

how do you consolidate the debt with personal?

what do you get by consolidating?

what is flexireserve?

 

how long can you extend the term of your home loan?

you can extend the term of your home loan from the standard 20 years to 30 years to help manage your account. this will lower your monthly home loan repayments to a more affordable amount, and free-up your monthly cash flow. the term of your loan can also be decreased at any time at no additional cost. this is something that is very practical and easy on the pocket.

why would you want to extend the term of your home loan?

you would want to extend the term of your home loan because of the following reasons:

·         you would like to free-up monthly cash flow

·         you want to lower your monthly home loan repayments to a more affordable amount

by extending the term of your home loan, you are extending the spread and therefore lowering the monthly home loan repayments to smaller chunks. this translates to more available cash you can use instead of heavy payment schedules.

how do you fix the interest rate on your home loan?

with an personal home loan you can fix your interest rate for a predetermined period of time, up to 2 years. then, after this period has expired, the interest rate simply reverts back to the prime lending rate applicable at that time. this is good if the interest rate in the predetermined period is very competitive. you don’t lose either in the deal since upon expiration, the existing prime lending rate at the time of the adjustment will prevail.

what are the advantages of fixing the interest rate of your home loan?

 

there are a lot of advantages such as:

  • you would like your home loan repayment to remain constant
  • you want to be protected against upward fluctuations in the prime lending rate
  • you prefer regular payments with no surprises
  • you have a limited or fixed income
  • you plan to stay in the home for a long time
  • you want protection from rising interest rates
  • you are refinancing at a time when interest rates are comparatively low

the key here is constancy and protection since your income is limited. you take advantage of the interest rates through refinancing when the rates are comparably low. that is smart thinking.

what do you get by fixing the interest rate of your home loan?

by fixing the interest rate of your loan, you get the following:

 

·         certainty regarding what your repayments will be for the specified period

·         protection against upward movements in the prime lending rate

·         the fixed rate option may not be terminated prior to the expiry of the agreement

·         the variable interest rate option or another fixed rate option can be applied once the fixed rate option expires

 

again, the key here is constancy since the interest rate is pegged at a certain amount. there are no pre-termination clauses. this guaranteed no loss of money even if the prime lending rate rises.

what is fastforward?

it is a home loan solution that increases monthly bond repayments annually, rapidly reducing your home loan, resulting in repayment over a shorter term and interest savings

how do you structure your accounts using multiplan?

taking control of your debt and managing it properly often means more than consolidating it. consolidating your debt is the important first step, but by creating multiple, different debt accounts within your home loan-each within their own repayment terms, interest rates and flexireserve facilities-you can make the most of your financial options and optimize your debt management.

what is multiplan

mutliplan is an personal-unique home loan option that consists of a primary account (your original home loan account) with one or more secondary accounts. it gives you the flexibility to create the optimum structure to reduce your monthly repayments and minimize your total interest costs.

multiplan facilities can only be obtained when applying for a new home loan, further advance or readvance facility or an personal debt consolidation loan.

why should you choose multiplan?

multiplan is a unique and versatile plan. choose this to take advantage of the following:

·         you would like to repay the debt you have consolidated over different periods

·         you would like to pay some debt off over an extended period at a lower interest rate

·         you want to use a mix of interest rates to improve the stability of your total loan repayment

·         you want to separate loan amounts used for different purposes

·         you would like debit orders for specific loan amounts to be drawn from different accounts

how do you consolidate the debt with personal?

you can consolidate your debt using your bond account to reduce your monthly repayments, and use the equity in your home loan to access additional funds at any time.

 

what do you get by consolidating?

you get the following:

·         convenient debt managementwith separate account numbers and statements.

·         access to short-term finance

what is flexireserve?

personal debt consolidation loans img

flexireserve allows you to withdraw any additional funds you have paid into your home loan whenever you need to.

take advantage of the unique features and benefits that only personal debt consolidation can offer. this is something that smart consumers should avail of. why settle for anything less?

old content for reference & archive.


the personal home loan enables you to finance residential property including vacant land.
this is the generic home loan, which can be tailor-made to suit your requirements by adding various features and options to suit your requirements.

 
features
  • 100% loan to purchase price.
  • the repayment term can be structured up to a maximum of 30 years – note that the general term is usually 20 years.
  • the loan term may be increased or decreased at any time, at no additional cost.  your monthly payment however may be affected and could either increase or decrease, depending on the option you have chosen. if your repayment increases, the bank will need to assess that you can afford the new repayment before it can be changed.
  • choose the interest rate option that gives you the repayment structure you prefer – fixed or variable.
  • with the exception of group schemes that provide salary deductions, repayments will be made via a due-amount debit order.
  • a larger bond can be registered than the amount of the loan granted.
  • link your home loan to personal internet banking and telephone banking for electronic access.
  • further loan amounts may be applied for as soon as your property value increases sufficiently or when you want to extend/improve your property.
  • additional deposits can be made at any stage, which will immediately reduce your interest cost.
  • gain immediate access to available funds via the internet, telephone, atms or branches with flexireserve.
  • purchase multiple properties and link them to a single account.

 
 
benefits
  • no deposit.
  • determine repayments by having a flexible term.
  • by fixing your interest rate, your rate wont change for the period which you have chose.
  • set up a debit order.
  • cut the cost and time when increasing your loan in the future (further advance).
  • transact hassle-free and cheaper electronically.
  • the further advance option allows you to finance just about anything from purchasing another vehicle to improving your existing home at more affordable rates compared to other finance mechanisms.
  • you can save by depositing an additional amount into your loan or by opting to pay more than your monthly repayment.
  • have one repayment, one term and an interest rate for multiple properties.

 qualifying criteria

  • a monthly income of at least r 7 500 (single or joint) is required.
  • all other normal credit criteria apply.
  • only residential properties will be financed.

 
costs and repayment
  • once registration of the bond has taken place, the usury act provides for certain fees that will be debited to your home loan account. these are:
    – initiation fees – this is a once-off fee charged for initiating the home loan application in readiness for registration.
    – service fee – a monthly fee to cover all administration costs
  • interest is calculated on the daily outstanding balance and capitalised (debited) monthly on the repayment due date. unless otherwise requested, the repayments due day will be the first day of each month.
  • the preferred method of payment is per debit order – although other repayment methods may be utilised to repay your home loan (for example electronic transfers, cash, cheque deposits, salary deduction or stop orders).
  • monthly repayments must be met in terms of the mortgage loan agreement. in case of default, normal recovery procedures will apply.

 
 
transacting on your account
  • loan repayments are generally structured on a monthly basis.
  • withdrawals can only be made from your home loan if flexireserve has been set up on the account.
  • you can transact on your home loan via personal internet banking, telephone banking or at any personal branch.
  • telephone and internet banking can be used  once you link your personal home loan account to an personal transactional account and have registered for telephone and internet banking.
  • joint accounts require all signatures to transact, or a general power of attorney for one party to transact on the account.

 
first-time home loan
 
although one home loan is granted, the account is set up in such a way that the cost portion is separate from the purchase price.
by structuring costs over a shorter repayment period means you pay less interest, however, you can select any term as long as it doesn’t exceed the term of your primary loan.
 
 
features
  • up to a 108% home loan to cover all costs associated with purchasing a home.
  • you have the option to repay costs over a shorter period – saving you huge amounts on interest! (personal recommends a 5-year term for repayment of costs. however, you determine the term for this loan, as long as it is less than the term of the main home loan account).
  • you may opt to repay your loan back over a maximum of 30 years
  • structure each account uniquely with its own term and interest rate (fixed or variable).
 
benefits
  • you don’t need upfront cash to pay for transfer and registration costs.
  • access to the property market.
  • save by paying the costs portion off quicker.
  • flexibility of account structure.
 
qualifying criteria
  • you have to be a first-time home buyer
    only individuals with a regular and reliable source of income will qualify
  • a single monthly income of r6 000 or a joint monthly income of r10 000 is required
  • the minimum loan amount is r120 000
  • life cover is compulsory


  • top stories

    sa, france sign deals
    28 february 2008
    france and south africa sign a cavalcade of bilateral agreements
    students apologise for racist video
    28 february 2008
    two free state university students have apologised for their involvement in a racist video which sparked a national outcry
    french agency to boost municipal skills
    28 february 2008
    the french development agency afd has signed a deal to contribute 7.5 billion euros to the “vulindlela” project
    treasury releases draft rules for life industry
    28 february 2008
    the national treasury has released draft regulations in terms of the long term insurance act
    manto seeks to curb health costs
    28 february 2008
    health minister manto tshabalala-msimang is to seek changes to legislation in a bid to contain spiralling private health care costs


For more information, visit Standard Bank Debt Consolidation.  Or you could also look at Sanlam Consolidation Loans




IMPORTANT: We do not give out financial advice. We operate an online referral service and we forward on all your requests and applications to qualified licensed third parties with whom we have pre-arranged agreements. You will deal directly with these advisers. We may also receive remuneration or commissions from these third parties for referring you to them. Remember to seek independent financial and legal advice from a qualified person before entering into any binding financial transactions.
Disclaimer | Privacy Policy © Approved Financial 2005 - 2015.