Even though one home loan is granted, the account is set up in such a way that the cost portion is separate from the purchase price. By structuring costs over a shorter repayment period means you pay less interest, however, you can select any term as long as it doesn’t exceed the term of your primary loan.

Features

• Up to a 108% home loan to cover all costs associated with purchasing a home. So you don’t need that upfront cash to pay for transfer and registration costs.
• You can repay costs over a shorter period – saving you huge amounts on interest! (Absa suggests a 5-year term for repayment of costs. However, you determine the term for this loan).
• Life insurance is compulsory. Added disability and retrenchment cover is available.

Qualifying criteria

• You have to be a first-time home buyer
• Only individuals with a regular and reliable source of income will qualify
• A single monthly income of R6 000 or a joint monthly income of R10 000 is required
• The minimum loan amount is R120 000
• Life insurance is compulsory
• Monthly repayments must be made by debit order or salary deduction
• Monthly home loan repayments may not exceed 30% of total monthly income (single or joint) for the TOTAL loan amount (purchase price plus cost)
  • Fixed rate option compulsory when repayments are greater than 27% of total income
  • If repayments are 27% or less of your total monthly income, you have the option to choose between a fixed or a variable interest rate option.
    

    Online Home Loan Application