ABSA home loans are made through one of the largest banks in South Africa. Thus, if you are buying a home in South Africa it behooves you to deal with ABSA for your home loan.
There are a number of different loans available for your home. For instance there is the Absa Home Loan, the MyHome Home Loan, as well as different home loans for existing customers.
The ABSA home loans are completely flexible, enabling you to finance not only your residential property but also even vacant lots that you intend to use to build your residence upon. You will be able to tailor and customise your home loan so that it fits your needs perfectly.
Actually, you may be investing in other property using their additional funds, or perhaps you wish to utilise the equity found in your home in order to manage your debts. They also give ABSA Home Loans for improving an existing home, building a new home, or buying an existing home.
There was mention above of the ABSA loan being flexible, thus you may be wondering in what way this is so. Well, for instance you may pay off your loan sooner than you negotiated for, anytime prior to the normal 30-year payoff. Thus by accelerating your payments, you will be paying substantially less interest. As you'll remember interest is figured out on the balance of what you owe, thus for every additional payment you are making over and above your regular payment, you will see the figure move down for you.
Some people naturally wish to pay off their mortgage faster, and thus even when you open the loan with ABSA you will be given a choice of either a 30-year bond or a 20-year bond. Thus your mortgage can be tailored to fit you specifically. Affordability is key here, as your payments will obviously be lower with a 30-year bond.
More choices are available for your ABSA home loans in that you may be presented with a choice of a fixed rate or a floating interest rate. Floating interest rates are tied into the prime-lending rate available on the Web or in your local newspapers. If on the other hand you wish to utilise a fixed rate, you may do that. Simply remember though, that fixed rates are negotiated for a specific amount of time, and when that time expires, the loan's interest rate will reset to the prime lending rate or the variable rate. When interest rates are low, many people refinance their real estate, thus if you are expecting a lowering of interest rates, then a fixed rate is best.
Interestingly enough you will also find that ABSA home loans can also be increased if your home's value goes up. ABSA refers to this as a Further Advance. Also available to you is a re-advance. This works in this manner, your have paid off let's say 50% of your home's mortgage, but you'd like to borrow against the repaid portion. ABSA will also work with you to accomplish this.