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

Although these days more and more people are entering the property market, the financial decisions surrounding buying a house can make it a daunting task. For many people buying a house will be the single biggest investment they will make in their life and therefore it is important for first-time buyers to choose a home loan that will best suit their financial needs. By having more than 130 years of experience in home loans, it is thus simply logical that more and more South Africans are choosing Absa home loans to assist them in home ownership. According to Absa's web site, the bank has the widest infrastructure of channels which covers a country-wide branch network, ATMs, easily accessible and convenient full service Internet banking and telephone banking. The service excellence customers have grown accustomed to, is extended by a regularly updated web site and the Absa Home Loan Helpline. Absa's innovative approach to home loans offers a choice of products such as MultiPlan and FlexiReserve, as well as value-added features like Absa Rewards and BondSaver. Each of these have its own unique benefits and are only available to Absa home loan owners.

Who qualifies for an Absa home loan?

Anyone who wants to own a home (or already does), including:

• Individuals (single or joint) with a regular and reliable source of income.
• Any person whose employer has a group scheme arrangement with Absa.
• A close corporation, trust or company that was formed for the purpose of owning a residential property (the income of the individual {be it a member, trustee, or director}is assessed for affordability).

Potential borrowers should also bear in mind that a monthly household income of at least R3 500 (single or joint) is required and that monthly home loan repayments may not exceed 30% of their total monthly income (single or joint). The bank's home loan pricing is competitive and Absa also offers the option of a fixed interest rate which will protect home buyers against future rate increases. Although the fixed rate may be slightly higher than a variable rate, the fixed monthly rate over a predetermined period will enable buyers to control their monthly budget and plan ahead financially. Home buyers can further experience the flexibility of the Absa home loan when using it to finance home improvements and renovations. For more information on how Absa can assist you in owning your dream home, contact the Absa Home Loan Helpline on 0860 111 007 or ask a mortgage originator for advice.