If you want to purchase property, whether for a business or home, you do so by taking out a bond. A bond is more commonly referred to as mortgage. It’s rare that an individual will have ample enough funds to purchase a property straight-up. So the individual must borrow from the bank.

Did you know on average, a family will move three times? That means that you are changing residences more often than you might think. And even if you don’t fit the norm, sometimes you need to expand.

Taking out a new mortgage is a straightforward process, much like the first time you took out a loan for your property.

The only difference is the bank will need to find out the exact reason you want a second bond. With the first bond it was simple, you wanted to own a house or start up a business. With a second bond, you are adding something in addition to your first bond. The bank needs to know your intentions.

When considering such a request, the bank will follow the procedures that they would do when granting a new mortgage, but with one or two minor differences. If you plan on renovating your current property and just need help via a loan, the bank will request you submit estimates from professional contractors. Banks are much more inclined to grant the money if professionals will work on the renovation and not yourself.

Bonds are intended for the long-term. Once again the bank makes a profit because of these long-term investments, which means the bank will never offer a mortgage lower than ten years. The more common and popular age of a bond, ranges from twenty to thirty years.

Banks who issue bonds are entitled to ask for banks statements and details of income. Banks prefer to see bond repayments be no more than one third of the joint net salaries of the buyers. They will never admit this openly, but banks need to have this type of verification.

Purchasing and owning property is an experience and right everyone should enjoy. However, it’s also a time filled with doubt and concern. Do your homework and make sure you can afford the bond both now and in the future.