Results 1 to 3 of 3

Thread: 30% RTI - guideline or legal requirement?

  1. #1
    New Member
    Join Date
    Oct 2012
    Location
    South Africa
    Posts
    4
    Thanks
    1
    Thanked 0 Times in 0 Posts

    30% RTI - guideline or legal requirement?

    I've recently applied for a first time home loan at several banks. One of the banks replied with a "approved in principal" letter which left me a bit confused and worried. They offered me a fairly high interest rate at a lower repayment period, which pushes my Repayment to Loan value up to 34%.

    I was under the impression that the generally talked of 30% RTI limit was legally set. Is this the case, or is it just a general guideline?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,977
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    The 30% of income "limit" for home loan repayments is just a general guideline. Ultimately it's all about affordability (being satisfied that you should be able to make the instalments) - and collateral (especially if you've already got assets or annual income exceeding R1 million where much of the more punitive aspects of the NCA fall away).
    The trouble with opportunity is it normally comes dressed up as work.

  3. Thanks given for this post:

    alphac (10-Aug-13)

  4. #3
    New Member
    Join Date
    Oct 2012
    Location
    South Africa
    Posts
    4
    Thanks
    1
    Thanked 0 Times in 0 Posts
    Interesting, thanks DaveA. I was always under the impression that it was a legal requirement.

Similar Threads

  1. DOL says AIA are legal
    By murdock in forum Electrical Contracting Industry Forum
    Replies: 34
    Last Post: 17-Aug-11, 07:38 AM
  2. Statutory adjustment from an employee - legal or not legal?
    By peanuts in forum Labour Relations and Legislation Forum
    Replies: 1
    Last Post: 16-Feb-11, 12:12 PM
  3. 2 Warnings in one day, is this legal?
    By MadJan in forum Labour Relations and Legislation Forum
    Replies: 5
    Last Post: 25-Jan-11, 03:37 PM
  4. Fumigation requirement for round-wood import
    By maria in forum Pest Control Industry Forum
    Replies: 9
    Last Post: 09-Feb-10, 07:34 AM
  5. Inter-forum guideline.
    By Dave A in forum Administrative issues
    Replies: 0
    Last Post: 21-Aug-06, 04:08 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •