Property investment is one of the most reliable ways to create sustainable wealth. Yet, many people who want to invest in property feel that their low income means this door will stay closed to them as they can’t qualify for a loan. IGrow Wealth Investments would like to bring the hope of wealth creation to more South Africans by announcing that a joint home loan is also an option. This means you can share investment costs. This powerful tool allows two or more people to purchase a property through joint financing.
At IGrow we will help you unlock the benefits of a joint home loan and offer guidance to make your property journey seamless. IGrow bond originators have excellent relationships with all major South African banks and financial institutions and will be able to negotiate favourable terms on your home loan.
With the aid of qualified IGrow wealth strategists and our bond originator team, we’ll sort out the finer joint home loan details with the bank of your choice.
At IGrow Wealth Investments, we make property investment possible by helping clients apply for a favourable joint home loan and providing the right financial tools to make their investment journey seamless. Whether you’re looking to invest with a spouse, a family member, a friend, or a business partner, IGrow can help you structure the right solution to meet your needs.
We’ll look into the following areas concerning joint home loans:
2. The benefits of a joint home loan
3. IGrow Wealth Investment’s joint home loan offering
4. IGrow’s Home Loan Repayment Calculator
5. Why sharing or splitting a home loan makes sense
6. A table showing the Advantages & Disadvantages of joint home loans for different co-applicants
1. What is a Joint Home Loan?
You may be wondering, “What is a joint home loan?”
Simply put, it’s a loan taken out by two and sometimes more people to purchase a property. This way of taking out a loan is most common for married couples, but it’s also popular among:
- Parents and children
- Aunts/uncles with their nieces/nephews
- Grandparents with their grandchildren
- Friends who want to invest in property together
If you decide to pool your finances, co-applicants for a bond can qualify for a higher loan amount, which makes it a smoother process to secure your combined home loan. Sharing the home loan costs makes the repayment of the loan easier to manage.
Under IGrow Wealth Investments, you will find IGrow Home Loans. The bond originators in this department of IGrow are adept at securing home loans for individuals and for joint applicants, too. Our bond originators will help you benefit from the perks of co-ownership and shared costs regarding your property investment.
2. The benefits of a joint home loan
When you apply for a joint home loan in South Africa, via IGrow Wealth Investments, you will encounter several major benefits:
Better loan eligibility: South African banks and financial institutions have a positive outlook on a combined income when evaluating a joint home loan application. This also means co-applicants qualify for bigger loans and potentially favourable loan repayment terms.
Shared financial costs and responsibilities: Loan repayments are shared between co-owners of the property. This helps ease the financial burdens of property ownership..
Loan repayment will be quicker: because there is more than one contributor, the loan is often repaid more quickly, decreasing overall interest payments.
You will all improve your credit score: Successful joint loan repayments will help all co-owners create a stable credit history.
Better investment opportunities: Joint home loans mean you can enter the property market even if you wouldn’t be eligible for a loan on your own.
3. IGrow Wealth Investment’s joint home loan offering
IGrow’s goal is to make property investment simple and accessible for our clients.
This is how IGrow’s team would help you secure as well as manage a joint home loan in South Africa:
Assessing your eligibility
Our property investment specialists need to assess the finances of the co-applicants and aid them through the joint home loan application process, taking affordability into account.
Structuring your joint loan
Each co-applicant will be made aware of a clearly defined loan amount that they will owe, to avoid any conflict. The IGrow team will structure a formal legal agreement that aligns with the investment goals of each co-applicant.
Submitting the joint application
IGrow helps you navigate the joint home loan application procedure. We make sure all the required documents are in place to achieve the best possible results for a combined bond approval.
Managing repayments
IGrow offers you investment management services so that your joint loan repayment journey is smooth, is scheduled and incorporates the ideal capital growth you can achieve via home loans.
4. IGrow’s Home Loan Repayment Calculator
By using our Bond repayment calculator, as a co-applicant for a Home loan, you will get the correct results by doing the following:
1. Enter your home loan amount
2. Enter the correct interest rate
3. Enter your loan term in months (IGrow Home Loans usually have a 20-year term for individual home loan applicants. 20 x 12 = 240 months. So enter “240” here).
4. Click “Calculate”
5. Divide this answer by the number of co-applicants (assuming that each co-applicant is paying in equal amounts and getting an equal share of the profits and expenses) and you will find out what each person owes on the joint home loan.
Our calculator helps both individual bond applicants and co-applicants enter a few quick details to come up with your exact bond repayment amount in a matter of seconds.
IGrow’s bond repayment calculator is currently being refreshed with a new look and even better functionality! You’ll see our new bond repayment calculator on our website soon!
If you’re looking into Home loan applications, the new version of our calculator will make calculations even easier, giving you a more detailed breakdown of payments due than before. You’ll know when it’s live due to an announcement on our IGrow Website
We offer financial support like Rental Assist and sometimes smaller / no transfer fees to our clients.
Our Bond Repayment calculator is perfect for working out exactly how much you owe each month for your home loan, be it for an individual or a co-applicant paying off a joint loan home loan in South Africa.
5. Why sharing or splitting a home loan makes sense
By splitting or sharing a home loan, investors can benefit from various perks, such as:
- A lower financial burden for each applicant: monthly repayments are split between co-owners of the property, which makes managing their finances much easier.
- Shared risk and investment expenses: instead of bearing the risk as a single applicant, co-applicants will split costs for the combined home loan and share financial responsibility..
- Secured possibility of a property investment: a lot of people looking to invest in property would perhaps struggle to qualify on their own, yet with a joint home loan, taking the plunge into property investment is possible!
Our IGrow current bond repayment calculator helps investors understand the financial commitments they are making and plan for their bond repayment strategies.
6. The Advantages & Disadvantages of joint home loans for different co-applicants
To help you as a potential joint home loan applicant make decisions regarding property investments, here is a Table showing you the Advantages and Disadvantages of a joint home loan in South Africa. This table compares these advantages and disadvantages alongside the different potential co-applicant relationships:
Conclusion
Property investment is a sound wealth creation strategy, and by taking out a joint home loan, the possibility is all the more real! If you partner with a spouse, relative or friend, you can boost your home loan eligibility and split up financial responsibility. You are securing your property investment future, together!
With IGrow Wealth Investments in your corner, you will have experts guiding your property investment journey. We will facilitate an easy joint home loan application so that you can enjoy the perks of personalised investment strategy solutions to maximise your ROI on your joint property purchase.
Are you interested in finding out more about a joint home loan through IGrow?
Contact IGrow Wealth Investments, and let’s get the ball rolling on your new co-owned property investment!
