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'Having a car loan works against you when applying for a home loan'

21 April 2021 2:38 PM
Tags:
Financial planning
Debt
Gerald Mwandiambira
Personal finance
investing
car finance
Property
Home loan
Mortgage
bond
Africa Melane
car loan
investing in property

Considering a car loan? You may want to think again. Africa Melane interviews financial planner Gerald Mwandiambira.

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South Africa has decent roads but lacks good public transport infrastructure.

Many South Africans, therefore, choose to buy their own vehicle, usually financed with debt.

The pandemic has resulted in a marked increase in home loans while vehicle finance is in the doldrums.

Africa Melane asked financial planner Gerald Mwandiambira for advice on weighing up a car loan versus a home loan.

If you are thinking of buying a home, perhaps you should consider doing without a financed car, advises Mwandiambira.

Image credit: prostooleh (123rf)

Related articles:


The number one reason most people are declined when they apply for a home loan is that they’ve purchased a car… If you’ve taken out a car loan… it has a significant impact on affordability…

Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth

A home is an appreciating asset… it’s a much more secure loan from the bank’s point of view. A car depreciates… Home loans are easier to apply for if you don’t have a car loan.

Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth

Having a car loan will work against you when you apply for a home loan… If you’re wondering whether to buy a home or a car; definitely get a home loan first…

Gerald Mwandiambira, Certified Financial Planner - Sugar Creek Wealth

Listen to the interview in the audio below.




21 April 2021 2:38 PM
Tags:
Financial planning
Debt
Gerald Mwandiambira
Personal finance
investing
car finance
Property
Home loan
Mortgage
bond
Africa Melane
car loan
investing in property

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