IF you are building or buying property, there are several steps that you need to follow to be able to get a mortgage facility.
There are also a number of mortgage options depending on your requirements. What you need to know according to CABS as posted on Old Mutual Zimbabwe’s twitter handle. Before applying for a mortgage, there are a number of factors to take into account. Depending on your requirements.
Ordinary loan — when a completed or existing property is offered as security over the bond.
Building loan — where the whole property or part of it is still to be constructed.
Further advance and re-advance — when the security offered is already mortgaged to CABS and where you, the mortgagor, require further funding for whatever reason (depending on our lending policy at any point in time). The difference between a further advance and re-advance is that a further advance requires a further bond to be registered and a re-advance is an amount that can be advanced to you immediately after signing the offer letter because the amount will be covered within the original bond.
Take over loan — where the fixed property is already mortgaged to CABS and you, the purchaser, apply for an amount more or less the amount owed by the previous mortgagor.
Working capital loan — if you need capital to finance your business and you own property, you can use it as security over the bond.
Once a bond is approved, it’s compulsory to take out home owners insurance to cover the full value of the property in case of fire, hail, and damage, among others. Life insurance on mortgage insures the bond holder’s life. Should they die, the proceeds are used to pay off the bond.
The society also looks at your age and income to ensure you are not over committing yourself.