Buying your first home? Don't do anything before reading this!


50 days ago

So you've decided that the time has come to get onto the property ladder.

You're ready to take the leap and start investing in an asset that will work for you rather than paying off someone else's bond.

But before you start buying soft furnishings and looking at colour swatches, you'll need to get your home loan approved.

Financial planning guru Tsungai Masendeke takes Refilwe Moloto through the process and says while it shouldn't be a daunting task, the key is to be prepared.

Once you've identified a property, the most important thing is to get some kind of pre-qualification where you find out how much you can afford or how much the banks are willing to give you.

Tsungai Masendeke, Certified Financial Planner

Masendeke says when it comes to affordability, now is not the time to start stretching yourself too thinly.

Don't go for the highest home loan you can get. If you're currently renting, look for a property within the range of rental you've already been paying.

Tsungai Masendeke, Certified Financial Planner

When you aim too high, you set yourself up for disaster in terms of maintaining the payments.

Tsungai Masendeke, Certified Financial Planner

She adds that it's key to consider other outgoings related to the property such as maintenance and home insurance.

Listen to the full interview below:

This article first appeared on CapeTalk : Buying your first home? Don't do anything before reading this!

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