It is common for young people who want to buy their first homes to ask their friends or boyfriends or girlfriends to buy a home together. This generally makes it easier to get the home loan approved because joint incomes improve affordability. However before you rush to ask your friend/s to join you to buy property, you must be aware of the following;

1. If your friend is unable to pay the monthly bond instalment, you would have to pay their share of the instalment as well otherwise your credit report could be negatively affected because of the inability of your friend to pay the monthly instalment. Banks are not going to note that you have paid your share because they do not get involved in the details of your payment arrangement. So your credit record could reflect that you are in arrears too, if the home loan instalments are not paid in full. If it gets to a point where the bank has to repossess the property, you could end up with a judgment against your name
2. You must ask yourself the question “ what if my friend loses their job and they cannot afford to pay their portion of the home loan instalment?”
3. What if the relationship sours, who will move out? How will this affect the bond repayments?
4. What if your friend get married in community of property? His or her spouse automatically owns a portion of the property. What happens if they divorce?

If you want a Home Loan, contact ThuthukaSA Home Loans, we will help you with the following;

• To find out the amount of a home loan you qualify for
• Offer you affordable insurance to ensure that your home loan is paid up in the event of death or disability
• Negotiate a good rate for you when you buy a home
• Help you to get the Graduate Pricing Discount, if you are a graduate
• Help you to get more money against your existing home loan

Help you invest for legal costs of buying a home and a deposit for your home and lots more….