This uniquely structured facility assists first-time home buyers to fund the transfer and registration costs via their home loan.
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