Mc Naught and Company were there to see it start...
The National Credit Act has been the talk of the town for the past few weeks, due to it's coming into effect on 1 June 2007.
People have been saying that it's bad for the property market, will seriously put a damper on sales and generally make the process of obtaining a mortgage bond an absolute nightmare. Well, this is not quite the case.
Having examined the new legislation in detail, the National Credit Act is there to promote more responsible granting of credit by the banks and other credit providers.
How might this affect mortgage loans, you might ask? Well apart from a possible day or two extra that it might take to grant a loan, there is not going to be much of a change. The bank merely now looks at a potential mortgagor's total income in relation to total expenditure, rather than just the total income. This ensures that the mortgagor has sufficient surplus each month to cover his bond repayment.
Mc Naught & Company, your Specialit Property Attorneys and Convenayncers have lots more info on the NCA and are waiting to answer your questions!