6 Reasons why a deposit is important when buying property

Buying a home is one of the best long-term investments most people will ever make. However, taking the first step to make a purchase can sometimes be daunting and even intimidating, more so now with the current unprecedented times we live in.

FNB Home Finance Growth Head Mfundo Mabaso, says as a first-time home buyer, the most important thing to consider is whether or not clients can afford to take this big step.

“While it is still possible for a bank to grant clients a 100% home loan which does not require a deposit, we strongly encourage our first-time home buyers to consider putting down a minimum deposit of at least 10% of the value of the property to ensure that their home loan repayments are reduced and more manageable.”

Guest on the line: Herman Mazibuko, founder Agent Director of Amalga Real Estate Agency