What is a Mortgage?
A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.
Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.
Mortgage Prices In South Africa?
What is the current prime lending rate? As of May 2022, the prime lending rate in South Africa is 8.25%. It was increased by 0.25% in November 2021, and by another 0.25% in January 2022.
How does a mortgage work?
A mortgage is a way of borrowing money (a type of loan) to buy or refinance a property.
These loans are generally repaid over relatively long periods, often 25 years or more, to spread out the large cost of buying a home.
Mortgages are generally available from banks and other financial institutions, known as ‘lenders’.
Is it wise to pay off the mortgage early?
Paying off your mortgage early is a good way to free up monthly cash flow and pay less in interest.
But you’ll lose your mortgage interest tax deduction, and you’d probably earn more by investing instead. Before making your decision, consider how you would use the extra money each month.
Is a mortgage a debt?
Mortgages are seen as “good debt” by creditors. Since the mortgage debt is secured by the value of your house, lenders see your ability to maintain mortgage payments as a sign of responsible credit use.
They also see home ownership, even partial ownership, as a sign of financial stability.