Home loans for blacklisted people in South Africa or if you have a poor credit record are available in certain instances. You may be put on a blacklist by another company, it doesn’t mean there are no options to borrow money to buy property. Or any opportunity to borrow money from a different financial credit provider.
There are thousands of people in South Africa that have a bad credit record. And these numbers are increasing rapidly.
In fact according to Credit Report SA there are millions of people now with some kind of blacklisting. Here’s what they say on their website:
Around 6 million South Africans are currently blacklisted so it is better to be informed than ignorant.
That is a very high and worrying number of people with a bad credit record. They go on to say:
Blacklisting will severely impact your ability to get credit and will mean a much higher interest rate if you are able to get credit.
So as you can see, it’s important to keep your credit history as good as possible to stand any chance of qualifying for further financing.
Read More: 3 Ways to Qualify for a Home Loan
If you are one of the many people that need home loans for blacklisted credit history. And you’re not sure who to approach and where to start. Then check out the links on the pages of this website. Your application will be sent to several registered financial credit providers that specialize in helping those with a poor credit history record.
Video: Home Loans for Blacklisted People
Watch this Video if you don’t want to read all the information on home loans for people who are blacklisted in South Africa.
Providing you match the necessary criteria once your application has been processed. You could well be on your way to buying that new house you have been dreaming of and need to borrow money for.
This may also interest you: Financing a House with Bad Credit
Houses are not the only thing that people can get access to financial help for either. Bonds are offered to applicants for flats, factory units for businesses, vacant land and plots, even car finance is available to people with a bad credit record. Although the banks will not usually be willing to help in these instances.
Other Types of Home Loans (Not for blacklisted)
Different types of home loans are available. Therefore it is important that you choose the type of home loan that will suit your financial circumstances the best when buying a new house.
Variable Interest Home Loan. Your bank can raise or lower the interest rate depending on the interest rate the bank must pay to borrow money. They have to give you notice of interest rate changes.
Fixed Interest Rate Loan. You have a specific rate for a certain period. Usually one to two years. If you think interest rates are likely to go up then this type of home loan may be a good idea.
Capped Interest Rate Loan. You pay the variable interest rate if if interest rates fall. You never pay more than a capped rate because a maximum is set. Even if interest rates rise above the capped level.
Sometimes the capped rate comes with a “collar”. Which means the interest rate can fluctuate in a range, say between 16 and 19 percent. If base rates drop below 16 percent you will not benefit. But you will not have to pay anything when rates rise above 19 percent.
Guaranteed Decreases. Your interest rate is guaranteed to go down in steps over a period of one to five years.
To Summarize
In summary we have learnt that you can get finance for a home whether you are blacklisted or not.
Therefore make sure before you decide on which solution will suit your needs that you carefully consider the different types of home loans available to you and your family.
And above all never borrow money beyond your means.