Things to consider before accepting a 100% home loan from the bank

Gugs Mhlungu interviewed certified financial planner, Paul Roelofse.

Listen to their conversation in the audio clip below.

Buying a house is probably the largest purchase you will make in your financial life.

If you've applied for a home loan at the bank and they've offered you 100% (or more), Roelofse recommends that you carefully assess the long-term financial implications. 

This, he adds, will ensure you can comfortably manage repayments and shield yourself from potential financial stress in the future.

Financial institutions are said to be the biggest winners if you accept this no-deposit loan because the more you borrow, the more you pay.

"It certainly is an important calculation you need to understand in terms of buying a house."

- Paul Roelofse, certified financial planner

"100% loans, you can get mesmerised by it." 

- Paul Roelofse, certified financial planner

"If you are really smart and disciplined and you take this particular loan on, be very mindful that the more you put back into it, the more advantage you are going to have in terms of less repayments down the road."

- Paul Roelofse, certified financial planner

"Always be mindful that if you don't put more back, you're going to be set up for that extra interest down the road."

- Paul Roelofse, certified financial planner

Click here to read more about this topic on Roelofse's latest blog post titled, 100% home loan costs more than you think...

For more financial tips, visit Roelofse's website - www.investforlife.co.za

Scroll up to listen to the full interview.