SECRETS BANKS WON T TELL YOU. Special Report + 5 Point Checklist. Discover 5 ways your bank may be ripping you off!

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1 Special Report + 5 Point Checklist Discover 5 ways your bank may be ripping you off!

2 Discover How To Avoid The Sneaky Little Tricks Lenders Use To Load Your Home Loan With Extra Fees If you are buying or refinancing your home then the information contained in this ground breaking report is the most crucial reading you ll do this year. It could literally save you thousands of rands! I m going to expose a series of shocking misconceptions, fallacies, and a number of downright lies lenders use to boost their profits. You ll discover why the system is stacked against you and how banks are overcharging borrowers thousands of rands extra because they know they can get away with it! Incredible as this sounds chances are you are doing things, on the advice of your bank, which almost guarantees that you ll get the Wrong Loan at the Wrong Price and pay for it dearly until the day you re old and grey. The good news is these tragedies are absolutely avoidable with the knowledge I m about to give you in this report. Why should you listen to me? My name is Zulika van Heerden. As an 14 year veteran of the finance and real estate business I have seen things that would make most people sick to their stomach. I ve seen greedy lenders charge buyers a lot more in fees, interest rates and prepayment penalties just because of their ignorance. Conventional wisdom about consolidating debt into a home loan virtually bankrupted my in-laws. They were forced to sell the home they lived in for 17 years to pay back what they owed to the bank. Sad but true Banks try to promote an image that they care about you but all they really care about is to make as much money as humanly possible. They know they can get away with charging buyers and homeowners just like YOU, thousands of rands extra just because you don t know any better! However, you don t have to run the risk of your bank taking advantage of you. Whether you are applying for a new home loan, a second bond or refinancing I m going to show you exactly how to get a home loan without getting ripped off in interest rates or junk fees.

3 From now on, every week or so, you ll get tips straight from the battlefield of the home loan business. Somebody who s in the trenches day in and day out helping people an insider who shows you the facts quickly and easily, so you don t get cheated! I have seen more than 1,500 real estate; refinancing and home loan transactions get approved over the years I have seen and financed every type of home loan under the sun Conventional, JUMBO, V.R.M. s, reverse mortgages, Balloon, owner financing, 100% financing, 110% financing I ve BEEN THERE DONE THAT and earned my stripes! The information in this report has helped so many people just like you make an INFORMED decision when it comes to getting a home loan and buying a home. You get all my expertise at absolutely no charge for getting the best home loan rate at the lowest cost in the current market. You get all my experience from thousands of transactions boiled down into one, simple-to-understand, easy to use program for getting virtually the lowest mortgage available. Use this checklist below to ensure you re not getting ripped off by your bank. 1. Know what you are signing. Beware of Hidden Costs People are often so emotional during the home buying process that they sign their loan documents without reading it properly. In some cases their previous home loan consultant 'assured' them that there are no penalty clauses in their contract and they do not have to worry. Until the day they decide to move their home loan to another bank. This is where hefty penalty fees are imposed for paying off their home loan before maturity date. Some banks will give you a lower interest rate, if you are prepared to accept a prepayment penalty, because it guarantees the bank won t lose money should you decide to refinance your home loan within a few months! Not sure if your home loan contains a prepayment penalty? DON T TAKE THEIR WORD FOR IT. Let us help you with our Free home loan approval assistance program where we will double-check that your lender is not trying to dupe you. Bait- n-switch Loan Tactics People who do not know how to shop for a home loan just call a list of banks and ask them what their best rates are. That's it! Inexperienced borrowers do not realize that a quote like that is absolutely useless. Lenders will give you a low quote over the phone for the sole purpose of getting you into their offices to clinch a deal at a higher than quoted rate. That is way telephonic quotes are worthless.

4 In fact, a number of lenders use a sneaky type of bait-n-switch tactic which is very unfair to the person applying for a loan. For instance, they may advertise a reduced interest rate on a loan and you might think you re getting a good deal. However, in reality it would be extremely difficult (as much as 75% of all customers are turned down) to qualify for such a loan. Then after you ve been turned down, they will offer you a different loan which has a higher rate that is not designed to be of benefit to you. But since, you ve gone through all the trouble in getting the loan, you decide to take it. So, how can you find out if the quote you re getting is an honest quote, and not a misleading bait-and switch-tactic from a lender? It s easy. Let us help you with our Free home loan approval assistance program where we will get you a final approval from the bank which holds the bank true to its quoted home loan rates. 2. Banks will gouge you with extra fees In 2012 some of the biggest banks (Barclays, HSBC, Citigroup, JP Morgan) in the world were fined billions of dollars for overcharging borrowers by manipulating interest rates. Here s an interesting quote from Wikipedia about this scandal. Because Libor is used in derivatives markets, an attempt to manipulate Libor is an attempt to manipulate derivatives markets. Since home loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide. Source -Wikipedia So basically the banks, who we re supposed to trust, are the same ones that are scamming us. Sometimes they ll pinch a few rands here or there other times they ll charge you thousands in extra interest and you may never find this out until it is too late. My question is since the banks that were caught represent only the tip of the iceberg how many more lenders do you think are ripping off home buyers, just like you, and getting away with it? "You don't realize the interest you re paying " The banking industry does not want you to know how to shop for a home loan because they won t make as much money out of you if you are informed and that's how they want to keep it. Every year thousands of South African home buyers and investors pay millions of rands more than they need to.

5 The most eye opening example of this is your home loan. If you purchase a home with a conventional home loan, and you pay off that loan over 30 years you will pay for that loan about THREE TIMES. You see, the majority of people pay off their home loan over 30 years and not 20 years as you would expect. Every time you apply for a second bond or you refinance your home loan to get cash out you start over with a 20-year loan. For example, if you paid down your home loan to 10 years remaining, you should not allow your bank to reset your home loan into a 20-year loan (or worse, 30 years), even if they offer you a slightly better interest rate. Instead you should keep repayment term (10 years in this example) the same, because in terms of loans, time is your biggest enemy, not interest rate. If you can afford to pay back your home renovation loan over a period of 10 years, you ll save yourself hundreds of thousands of rands Also keep in mind that in the beginning the bulk of your home loan payment goes toward interest and only a small amount towards capital. So, if you borrow money from the bank and reset your payment over to the maximum period you re paying the most interest over and over again. That s why so many people pay off their mortgage over 30 years instead of 20 without even realising it. So you can see how two-thirds of the total amount you pay to your bank is primarily INTEREST payments. Interest is pure profit for the bank but detrimental to your financial well-being. Ask yourself a serious question does the bank deserve to get so much of your hard earned money? Do you think that they are doing such an outstanding job that they should be compensated so well? This simply means that when you come home from a hard day at work, you ve just contributed to your bank s bottom line not yours. That s why ANYTHING you can do to cut the interest rate and/or pay it off faster MUST be taken advantage of. How to Save up to R600,000 on a R1 Million Home Loan Most of us think bank when we think home loan, and one mistake people make is going to their bank and taking the rate the bank gives them. Even though the bank often gives a discount off the prime rate, most of the time it is not the best rate available. People think that because they are getting a discount that that is the best rate going. In most cases, the rates given by banks are not the best on the market. Do some leg work first so you can get the best home loan possible.

6 For example, at a prime rate of 10% a R1 million home loan will cost you R3.2 million at the end of the day. However, by using an experienced mortgage broker (bond originator) it is possible to get up to 2% below the prime interest rate that banks offer. This means that on a R1 million home your total cost would be R2,6 million a saving of R600,000. All you need to do to qualify for these savings is 10-minutes. Let us help you save money on your home loan with our Free home loan approval assistance program. Just complete our short and sweet application form and one of our consultants will contact you. If you have your documents ready, this call will take a maximum of 10-minutes. 3. Life Insurance Rip-Off It s been said that this is the greatest area that most people spend so much of their life s, money with so little understanding as to what they re purchasing. One of the first things you need to realize about insurance is that this is a billion rand business and the banks want their piece of this lucrative pie. Most banks will include life insurance with your home loan and thus helping them to boost their profits. Consider the fact the banks only bet on sure things. This simply means that, if they re willing to sell you an insurance policy, it s because you, have a history that has proven they are going to win. Another way of saying it is if they re willing to give you a policy, it s because you probably won t need it. Their mathematicians (called Actuaries) have statistically calculated that you probably will never need the insurance and therefore, they sell you a policy. However, because you can't be sure of what will happen in the future, there are some areas of your life you do want to cover with the correct type of insurance. But you almost certainly won t need all of the coverage your bank would like you to purchase. If you want life insurance you can find much better deals than what your local bank will offer you.

7 4. Refinancing Pitfalls Refinancing your home loan is a great idea if you can secure a low-rate, low-cost loan and pay your debt off faster than would otherwise be the case. However, certain banks make use of clever advertising techniques to try and convince you that you should switch your bond to them and that you will save money etc. Their selling angle is in the lower monthly costs associated with refinancing. This common trick is used to show you how much money you will save monthly. They will add up your bond, car, credit, retail repayments and show you how much money you can save by switching. Then they will give you a brand new 20 or 30 year loan with lower monthly payments. These lenders focus on lower payments, rather than reducing your costs, which is not beneficial to you. Lower payments usually mean it will take you longer to pay off your debt, and inflate the total amount you ultimately pay. They also like to focus on everything you can do with all your cash " take a well-deserved holiday; buy your dream car " etc. But just stop for one moment and think about it. Instead of paying your car off over 5 years, if you refinance that debt into a 20 year home loan you've increased your payment terms with an extra 15 years. Even worse, if you take a 30 year bond to finance an over overseas holiday at the age of 30, you will be 60 years old when the loan is paid in full!

8 5. Recognizing a Bad Home Loan When choosing a home loan most people focus on the interest rate more than any other factor of the loan. The lowest interest rate, however, does not always mean you pay less money. Hidden fees, rising interest rates or prepayment penalties can cost you a fortune over the term of the loan. Understanding how to recognize a bad home loan may save you a lot of money in the long run. Variable Rate Mortgages (VRM s) Variable Rate Mortgages make buying a home easier, especially for first-time home buyers, but you have to understand what you are agreeing to. Most VRM s start out with a low introductory interest rate that can climb as interest rates go up. Unless you are prepared to pay a higher payment later on this kind of home loan it can turn out to be dangerous for you. It is especially difficult for those who can barely afford the loan to begin with. You do have some protection against high-rising rates if you have the option of adding a cap on either the interest rate or the payment amount throughout the life of the loan. However, if you want to play it safe, opt for a fixed rate home loan. Having a set payment for your home loan will make it easier to budget. Prepayment penalty Paying off your home loan early can save you thousands of rands in interest but not if there is a prepayment penalty clause in your contract. Keep in mind that the bank can charge you enormous fees for settling your loan early. Most people don t think they can ever pay off a mortgage loan early at the onset of the loan but your circumstances could change. It would be a shame to be penalized for trying to save yourself some money. Interest only loans An interest only home loan sounds wonderful to some home buyers because they only have to make a small payment each month for the first 5 to 10 years.

9 The down side of this is you are only paying the interest and are accruing even more interest on top of that. You will also not have any equity in the home until you begin paying on the principal. It s really like paying rent for your home. After the introductory period your monthly loan payments will rise significantly. And since most interest only loans are also VRM s you will find yourself at the mercy of the current interest rate. If you are not gaining equity in your home from your monthly repayments then you should reconsider buying a home until you can afford another type of mortgage. Lower interest rates If you are being offered an extremely low interest rate then you should investigate why. Ask for a quote so you can see what the closing costs (prepayment penalties, initiation & legal fees, insurance etc.) will be. Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate. High interest rates If you know your credit score is good and you are still being quoted higher than normal interest rates then don t take the first loan that comes your way. Shop around. Do your homework and make sure you know what the current prime rate is and the rates of several lenders. A home loan is a very long commitment and you don t want to make that commitment with the wrong bank. Banks are in the business of making money so it is up to you to understand what is available to you. BONUS TIP How to become mortgage-free sooner Paying your home loan off the traditional way takes 20 to 30 years and costs about THREE TIMES the purchase price of your home. Here are some effective ways to pay off your home loan sooner, build equity faster and save thousands in interest. Change your payments. Simply increasing your payment frequency to bi-weekly or weekly costs nothing and can save thousands of rands over the life of your home loan.

10 If you can afford to pay a little extra, consider accelerated biweekly or weekly payments these are equivalent to making one extra monthly payment per year which results in substantial savings. Or you can make a lump sum payment which can achieve savings several times as great over the life of your home loan. Use your mortgage as your bank. If you cannot make extra payments, consider managing your home loan in such a manner that it pays off the principal faster without costing you anything more. Link your home loan with your cheque account to reduce interest costs. Since interest is calculated on a daily basis deposit your salary into your home loan and pay your bills each time you deposit income into your account, it will decrease the amount of interest that you end up paying. Leave any provisional taxes and VAT payments in your home loan until such time that you have to make a payment to SARS. The result is that you'll take years of your home loan, with no change to your lifestyle or refinancing of your existing home loan. IN CONCLUSION: I hope that you have enjoyed this special report. The solution is not to work harder and to run faster. The solution is to be smarter about your money, which can bring you benefits almost instantly and have a huge impact on what your life is like 10 to 20 years down the road. I understand that it is a lot for you to take in so that is why I tried to keep this report as short as possible. Over the next couple of days I m going to surprise you with more cool stuff. So keep your eyes open for an from me (info@gpfmortgage.co.za) in the next day or two. 1