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It's much tougher for you to get a home loan

New borrowers will find it difficult to get 100-percent home loans and discounted interest rates.

1 July 2008 · Staff Writer

It's much tougher for you to get a home loan 

From Personal Finance
By Neesa Moodley-isaacs

A tough economic environment, with high interest rates and inflation, means you are less likely to be granted a home loan or a loan at a favourable interest rate unless you can put down a significant deposit and have a good credit record.

Banks are responding to the global credit crunch and the tougher local economic conditions by tightening up significantly on their lending criteria.

Justmoney.co.za says:

The housing market has turned. The growth in property for the last eight years has peaked and is now starting to decline. Access to cheap and easy credit has bee curtailed. When interest rates rise you may not be able to afford the mortgage repayments on your property. Some people will have to sell their houses at a loss, just to get rid of their massive mortgage commitments. Make sure you are aware of the various mortgage options available to you. Consolidate your debts and check if you need debt management before it is too late. Check your bank accounts and your savings accounts to see if they are helping or hindering you. Perhaps transfer your credit card balance to another to get a better rate.

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