Can I get a Second Bond?
If you wish to purchase property, either for a home or business, you are almost always left with no choice but to take out a bond. Bonds are also known as mortgages, and chances are unless you are living under a box, you are well aware of the recent mortgage crisis.
Banks want to lend money. In fact, it's one of their primary ways they stay in business and a founding pillar. Holding bonds allow the bank to make a long-term profit. It also allows the bank to own property until the lender has fully paid off the loan.
Taking out a new mortgage is a straightforward process, much like the first time you took out a loan for your property.
The only difference is the bank will need to find out the exact reason you want a second bond. With the first bond it was simple, you wanted to own a house or start up a business. With a second bond, you are adding something in addition to your first bond. The bank needs to know your intentions.
The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture.
After you provide the bank with all the details, they will sit down and study your case. The bank needs to decide if you really need the money and if you will be able to pay it off. It's difficult paying off one bond much less two.
The bank also tends to frown upon second bonds that are intended to help release some capital on the property to a struggling business or to support your own, especially if you are looking to start the business from scratch.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
Banks want to lend money. In fact, it's one of their primary ways they stay in business and a founding pillar. Holding bonds allow the bank to make a long-term profit. It also allows the bank to own property until the lender has fully paid off the loan.
Taking out a new mortgage is a straightforward process, much like the first time you took out a loan for your property.
The only difference is the bank will need to find out the exact reason you want a second bond. With the first bond it was simple, you wanted to own a house or start up a business. With a second bond, you are adding something in addition to your first bond. The bank needs to know your intentions.
The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture.
After you provide the bank with all the details, they will sit down and study your case. The bank needs to decide if you really need the money and if you will be able to pay it off. It's difficult paying off one bond much less two.
The bank also tends to frown upon second bonds that are intended to help release some capital on the property to a struggling business or to support your own, especially if you are looking to start the business from scratch.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
About the Author:
Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator
posted by Credit Counseling at
6:11 AM
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