SA home buyers consider a partnership loan
The structure of home finance continues to evolve as prices start to outpace the average annual increase to salary more and more people are joining the property market with a partner to share the burden of monthly payments.
Research carried out by Ooba across buyers of property in South Africa reveal a growing trend of partnership mortgage applications - where the two parties involved are either related (but not necessarily married) or just friends. More than a third agreed that they would be happy to enter into such an agreement if it meant they could secure their first property sooner than going it alone.
Experts advise that a formal contract is signed between the two parties concerned to protect initial investment and that life insurance policies are in place to cover mortgage debt in the event of serious illness/injury or unexpected financial difficulties.