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.
]]>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.