There are always various lending institutions that will give you a bank home loan, but only Standard Bank can give you Standard Bank Home loans. Their loans are special, as they will present you with a wider selection of loans than most banks can do.
For instance, you may be able to receive a home loan that covers 104% of the assessed value of the property. The reason that it goes beyond 100% is that you will be able to include the costs of getting the loan within the loan itself. This is highly important especially to new homeowners who have never owned a home before. The reason being that their inexperience in being home owners could mean that they may not have budgeted for home repair, additional insurance on the home, or even what the cost will be for furnishing that home.
If you are considering getting an adjustable rate or variable rate loan, then you will need to rely on the bank to tell you exactly when the rate will be changed, what causes it to change, and whether there are any guarantees or caps that may occur due to the variable rate changing drastically. This is one of the reasons why you wish to deal with an honest lender such as Standard Bank. They will answer all of your questions very thoroughly until you completely understand. Let’s face it property finance is a highly complex world, and with Standard Bank, they will be there for you to explain what is important to you. The very course of action of home ownership will become so much easier to comprehend if you receive their professional advice as well as guidance.
Do not be afraid to ask, for example, what the bond costs will entail. Different banks may quote you different figures for bond costs. It behooves you to ask why there is a difference from one bank to the next, and how this affects the loan in question.
Some people like to visit a number of different lenders to try to get the best deal. Of course you are totally free to do so, but we are quite certain that you’ll return to Standard Bank for your best loan.
Another reason why Standard Bank home loans are considered the best is that they will arrange for you to have a debit order so that you never miss a payment. In other words, your salary may come into Standard Bank, and the payment will be automatically taken from it. It is compulsory in their JumpStart loans for new homebuyers. Of course everyone marvels at the beauty of the JumpStart loans because you will not be required to save up for a deposit, causing a highly irritable strain on your lifestyle.
]]>You are generally allowed to use about 30% of your income for home loan installments. These installments exclude your home insurance amount. Deduct all your monthly expenses from your monthly earnings. Your monthly earnings should include any housing subsidies. The amount that you are left with, is the amount you can afford to put towards a home loan repayment.
After the offer of purchase has been signed, your home loan application can be finalized by following these 5 basic steps:
DreamStart is aimed at entry-level income earners by making home finance more accessible to them. The entry-level earners are those who earn between R1500 and R6000 a month, joined or single income. Your home loan will also includes a life assurance policy that will ensure that the outstanding amount of your home loan account is settled, should you die. You can also apply for the AccessBond facility with your DreamStart Home Loan option. The criteria that applies to the DreamStart option include:
JumpStart helps the buyers who can not afford the deposits and other up front costs like transfer fees, bond registration costs etc. A maximum loan of 108% is allowed to help you with these payments, especially when you are a first time homebuyer. The loan amount is calculated on 108% of the total value of the property. The criteria that applies to the JumpStart option include:
The JumpStart home loan option is not available for the following loan types:
Standard Bank’s ordinary home loan gives the homebuyer a loan to the value of the property (100% LTV). The homebuyer must make provision for the upfront costs like the transfer costs and bond registration. The criteria that applies to the Ordinary Home Loan option include:
SecuraRate is a whole range of different interest rate options that you can choose from according to your specific needs. You can choose between a fixed rate and a capped rate option. The fixed rate freezes your interest rate for a certain extent of time, being 12, 14 or 18 months. The capped rate caps your interest rate at a maximum rate for a certain extent of time. With Standard Bank an interest rate is guaranteed over an agreed period of time that you selected. Economic factors like inflation or currency depreciation would not influence your home loan interest rate over the period you selected.
The Standard Bank Variable Rate option is a conventional home loan. The base rate of Standard Bank’s home loan has been 14.50% since December 2007. The rise and fall of interest rates influence your home loan interest rate.
When you are starting to search for your dream home, you should go to Standard Bank to get a home loan pledge. This is a guarantee for the maximum amount that Standard Bank would offer to lend you for a home loan. This pledge is a free service from Standard bank and is valid for six months from the date of issue.
With Standard Bank Home Loans you can apply for an AccessBond link facility that will allow you to withdraw additional funds that you have deposited into your home loan account. The money can only be withdrawn after the loan to value is less than 100%.
This option of Standard Bank allows you to only start paying your home loan installments three months after registration, giving you a gap to use your money to get your home the way you want it. With this option the maximum installment to income is 27%. Standard Bank has a number of product options available – you must choose the option that suits your needs and lifestyle the best.
]]>Following a tough 18 months for people selling their properties and estate agents this positive news is a welcome sign of improving economic conditions. The past year and a half witnessed thousands of property industry jobs being shed due to the dramatic drop in sales volume in the property market.
Nedbank lowered its deposit requirements to between 0% and 10% of the value of the property depending on the client’s risk profile. Falling house prices was the main reason that Nedbank had increased their minimum deposit to between 10% and 20% during the past year. Although the bank believes that a 5% to 10% deposit should apply they will consider 100% mortgage loans for low-risk clients. Eager to attract new business the relaxation of deposit requirements will apply to new clients as well.
Nedbank will make no differentiation between clients who apply to the bank directly and those using a mortgage originator when applying for a home loan. The important role that mortgage originators have in sourcing new business for the banks makes this a sensible decision. The selection criteria for home loans is based on the client’s risk profile and the ability to repay the home loan.
The reduced interest rates and the relief this has brought to consumers influenced the decisions of the major banks and this is reflected in an increase applications for home loans and a stabilisation of prices in the residential property market. The reviewing of the various bank’s offerings to their clients is a result of the evident turn in the economic cycle.
This follows after a recent report by Lighthouse,a property valuations company was released last week. According to the figures given in this report various had already started showing an improvement as early as May this year and the company expects property prices to start moving upwards for the first time in 16 months. These predictions are based on data from the Deeds Office. The company is still waiting for data for the months of June and August before releasing final figures.
The Eastern Cape seems to be the area that will be the first to recover from the property market recession with the lower income housing showing higher returns than more luxury class housing which is currently the worst performer. The volatility of the affordable property market segment over the past few months makes current predictions very difficult.
According to a recent market report by Absa’s senior property analyst Jacques du Toit, the average nominal price of houses in the R3.1m -R11.5m continued to rise in the second quarter of this year. Taking inflation into account although house prices increase by 4% in value year on year the total decline is expected to be 3% for 2009 whereas the prediction is that house prices will increase by the same percentage next year.
]]>Developed by FNB’s marketing partner, FCB Johannesburg, the new One Account campaign is called ‘Loans of Our Lives’.
The brief put to FCB Johannesburg’s strategic team was to produce infomercials to explain the benefits of the product, launched 18 months ago, and demonstrate the relevant savings. A customer depositing his or her salary into the One Account and consolidating all his debt into a One Account, enables the customer to shave years off his loan and pay the combined debt off at one low rate.
Explaining the creative treatment, FCB South Africa group executive director, Ashley Bacon, said One Account has always had an ‘irreverent’ personality so there was an opportunity to push the envelope even further than usual.
“Once the ‘soap opera big idea’ had been mooted and given the go ahead by the client, the FCB strategists and the account management teams, FCB Johannesburg’s creatives Ulric Charteris and Jean Roux Bezuidenhout developed the scripts,” he said.
“Briefly, information about the One Account is written into typical ‘soapie’ scenarios and dialogue – a central character is used to ‘incidentally’ demonstrate the savings as the soap opera ‘stars’ talk through their financial woes and are then – in true soap style – given advice. In one scene, the character appears as an artist in the park and his canvas becomes the medium on which the savings are calculated; in another he is a waiter but this time his menu board is used as the vehicle.
For example, a character called Minky says: ‘You have to pull yourself together, Lesley. For once listen to your mother, now I know that I’m not your real mother, and when your real mother was abducted by the Russian mafia after your father joined that religious sect I took you into my home and it wasn’t much of a childhood being raised as a girl till you were eighteen, but we only had sons and your stepfather would have died if I had told him the truth after all those years, but that’s the past’. Lesley responds: ‘Mum, I can’t seem to manage my finances’ to which Minky suggests: ‘Why don’t you just get a One Account?’. She goes on to explain, among other points, that ‘Now, with a One Account, because your income goes straight into your account you’ll save about R300 a month on interest. And if you keep that R300 in your account every month in total you’ll save about R80 000 over the term of your loan’. The central character is present in this scene as a waiter chalking up the savings on his menu board.
“As the information to be communicated is relatively technical in nature, Ulric and Jean had to strike a perfect balance between entertainment and education; to further enhance the ‘soap opera’ concept, we cast ‘real-life’ soap stars in each commercial. I think the result is spot-on,” said Bacon.
The two commercials were shot in studio over three days by Red Pepper.
Full article available on Biz-community
]]>“Let us encourage our front-liners to be more knowledgeable and, more importantly, let us use what we have now created to attract career-minded young people and build a better industry and a better future for us all.” (Rodney Hayter, 10 Nov 2006)
First National Bank is a division of FirstRand Bank Limited. An Authorised Financial Services Provider. Source: Nedbank Property Talk
]]>The restriction for this option has been lifted on the AlphaBond and all qualifying clients including first time homebuyers are now eligible due to the increased demand in the market. Clients will receive a 104% Loan to Value bond that will cater for an initial payment holiday (deferred payment) of up to 3 months and payment is only required in month four.
Please note that this option cannot be exercised in conjunction with a 108% Loan to Value option. Clients requesting this feature may apply for an AlphaBond Option 2 (Initial Payment Holiday) and all other product rules relating to the Alphabond remain unchanged.
| Loan Amount | R100,000 up to a maximum of R2,000,000 |
| Minimum Income | Subject to affordability. |
| Term | Up to 360 months. |
| Interest Rate | The client has a choice between a competitive variable interest rate or fixed rate for a period of 12, 24 or 60 months. |
| Other | Acceptable credit record and stable income. |
Buying a house is an expensive investment. Probably the most costly investment you will ever make in your life. Finding the right house can be an overwhelming undertaking. That is why Nedbank tries to make is as easy and painless as possible – because when your finances are taken care of, the procedure can actually be fun. Choose a home loan from four different options that are specially designed to fit your distinctive desires.
All Nedbank’s home loans have special features. NedRevolve allows you to have some control over your loan, permitting you to manage your money more effectively. This also enables you to accumulate savings – free of any taxes!
Suppose you have some money available and want to deposit it in your home loan account, but you are afraid that you might need it in the future. Do you transfer it to your home loan account or rather play it safe and keep it for in case? Readvance gives you access to the capital amount you already paid towards your home loan account without registering for a new home loan.
You are determined to pay off your home loan as soon as possible. With Nedbanks’ Accelerated Payments option this has never been easier. This feature allows reimbursing your loan in the quickest possible time.
The house you decided on may need some attention or you may want to make some alterations to it. But you already took out a home loan and don’t know how you will afford the changes to your new place. Further loan with registration is the answer to your problems. This enables you to take out a second loan especially for such needs as improving your present home.
House Owners Insurance (HOC) is a condition to every home loan Nedbank grants, and a very usefull one to say the least. Not only does it protect the bank’s interest, but it can shield you from financial loss as well. According to Nedbank’s website, HOC covers not only the property, but the outbuildings (swimming pool, garage, walls and more) as well.
When you are no longer able to pay off your home loan (in the case of death or disability), you don’t want to burden you family with it. Loan Protection Assurance ensures that it is not required of your loved ones to take over the loan repayment.
According to Nedbank’s website their ordinary residential home loan is a flexible home loan that can be tailored to suit your individual needs. It can be used both for buying an established residential property or vacant residential land. The minimum amount you can borrow with the ordinary residential home loan is R100 000 for a term of up to 30 years. The maximum amount available on this option is up to 108% of the property value. To make things even more convenient, you can choose between fixed or variable interest rates.
Nedbank acknowledges that first time buyers are even more daunted by buying their very own place. And with this in mind they specifically designed Alphabond. This home loan provides you with the money to pay initial costs and help with cash flow. You can even take a three-month holiday from reimbursing your loan – giving you time and money to decorate your new house. You can borrow a minimum amount of R100 000 over 360 months and loan up to 108% of the property value. The option between a fixed or variable interest rate is available and what makes this loan even more impressive is that you can organize a rate concession once the loan is paid off up to under a 100%. Readvance (access to the capital amount already paid into your home loan account) is only available after tyour loan value falls below 100%.
As you climb the ladder of success or move through life, your needs change. Chances are that you want to move to another neighborhood. Or the pitter-patter of baby feet begs for more space. Whatever your reasons, BoosterBond literally allows you to boost your home loan – with a minimum amount of R500 000 and a maximum of 104% to the property’s assessed value. You have to earn a minimum gross income of R20 000 per month to qualify for this loan. Nedbank also requires of you to take out Rate Protection Insurance. This means your interest rate is fixed for five years. According to the website this will protect you against rising interest rates – giving you peace of mind against interest rate volatility. NedRevolve, Readvance, Accelerated Payment, Further Loan with registration, Home Owners Insurance (HOC) and Loan Protection Assurance are all available on this home loan option.
You know exactly what you want, but cannot find it anywhere? Building the home you dreamt about for so long are now possible with Nedbank’s building loan option. It is a mortgage loan that finances the construction of a new residence or improvements to an existing one. The bank monitors the building project to ensure that it is finished within a reasonable time and the loan is paid out as the building process develops. You have access to all the features available on other home loans.
Once you have decided what Nedbank Home Loan you require, you can apply online and let SecuBond arrange your loan for you. They will offer you a better rate, professional advice and prompt service, all free of charge to you.
You know the feeling when you walk into a clothing store and you can imagine yourself and that fabulous pair of jeans? You don’t even have to try it on, you just know it will fit like a glove? It is the same with shopping around for a house. The moment you put your foot through the door you can already smell the chocolate brownies you and the children will bake in the kitchen. Or you can picture working on your son’s bicycle in the garage. Magic. But all that is a waste if you can’t sign the deal there and then. Imagine losing your dream house for taking time to get your home loan approved? Standard Bank thought about that too and decided that such disappointment is not worth it. With the Pledge option, you can get a home loan approved even before you start the quest of house hunting. Pledge confirms your ability to buy property and is valid for six months since date of issue. This conditionary option is available to anyone that wants to buy a new house and is sure his or her home loan will be approved.
There is nothing scarier – or more exciting – than buying your first house. However, chances are that you are still short on cash and upfront costs and deposits may be a problem for you. Again, Standard Bank home loans has an option available for you. Any first-time buyer that earns more than R6000 per month can apply for this option, which has five different sub-options to fit your exact needs. The option offers a loan to the value of 108% of the assessed value of your property.
DreamStart offers low income-earners access to a home loan. If you want to obtain your first or second house and earn between R1500 and R6000, this option will suit your needs. Your circumstances play a vital role in the loan. Set up an appointment with a consultant at your nearest branch to find out how you can be rewarded with better interest rates and or insurance coverage.
Interest rates are always a headache, but can become even more so if you have a home loan. Higher interest rates means less money to spend on your home. If you are afraid of this, the SecuraRate-option can protect you against this. You can choose between the fixed rate and the capped rate options. The first option freezes your interest rate for a certain extent of time (12, 14 or 18 months). The latter caps your interest rate at a maximum rate for a certain extent of time.
Every once in a while one needs a holiday to break with old habits and generate new ones. While paying off your house, some unforeseen circumstances can sometimes put you in a financial dilemma. Standard Bank developed a payment holiday that allows you to take a break for three months from repaying your loan. The instalments you had to pay over that period now has to be repaid over the remaining time of the repayment-term.
There are other ways of paying off your home loan simply than working overtime like a madman. Any low-income earner who will have difficulty getting a home loan must consider the Fully Guaranteed Lending option where you repay your loan via a retirement fund instead of a mortgage bond. Employers can also use this option to extent their benefits to employees.
When buying a residential property that you want to use as a business, the Business Mortgage option is for you. This offers you a loan of up to 80% of the property’s assessed value, with a period of repayment for up to twenty years.
It is a good idea to repay your home loan as soon as possible and sometimes you even have spare funds to pay towards it, but can’t help thinking that you may need that money again at a later stage. AccessBond gives you the freedom to pay money towards your home loan and withdraw it again in the future. Again there is two options available: With AccessBond limit you can withdraw money up unto the original amount you borrowed and with the AccessBond linking facility you have an unlimited number of deposits into your home loan account with immediate access to funds transferred electronically.
You can also have access to funds that have already been paid on your home loan with the Re-advance option – as long as you have funds available in your home loan account.
A further advance option is a second bond on your property, ideal when you have renovations or alterations on your house. This second bond is registered over your property.
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
Qualifying criteria
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.
Anyone who wants to own a home (or already does), including:
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.
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