AIM It is compulsory for homeowners to insure their properties when taking out a bond, although the bank costs are very high and insurance companies sometimes refuse to pay out claims. The aim of this task is to investigate monthly home repayments over different time frames, and to investigate the value of home insurance. QUESTION 1: Mr Mokhobo and his wife have been married for five years. He has just been promoted to a senior position at his work and they decided to purchase their dream home. The house was on sale for R1 275 000. Their combined gross income is R85 000 monthly. They decided to put an offer to purchase on the house for one and a quarter million rand. ABC Bank offered them prime +1% with a deposit of 5% payable. 1.1 Which financial institution will assist them with a home loan? 1.2 (2) If the current prime interest rate is 10,5%, then at what interest rate was the loan offered to them? 1.3 Calculate the deposit they would need to pay. 1.4 What would their loan amount be from the financial institution? 1.5 (2) (2) (2) Their offer was accepted by the owner and the Mokhobo's approached their bank for a home loan. The home loan has been approved. 1.5.1 Calculate the transfer cost (once-off) if it amounts to 3,15% of the purchase price. (2)
