Standard Bank Home Loans

If you ready to purchase that property you have always wanted why not apply for Standard Bank home loans?

Standard Bank is one of the leading home loan institutions in South Africa and has assisted millions of individuals to obtain their dream homes. It has been able to do so as Standard Bank home loan branches can be found all over the country and is easily accessible.

Standard Bank complies with the National Credit Act of 2005 (NCA) and sound banking principles are followed which ensures that a professional service is rendered to individuals. Standard Bank also uses state of the art technology which allows for speedy home loan application and results.  In fact, many South Africans are pleased to find a Standard Bank branch in many overseas countries in Europe.

But how can one go about to obtain a Standard Bank home loans and what does it entail?

Firstly individuals will have to proof that they earn a fixed monthly salary of at least R6000 on a single or joint salary.

When applying for a Standard bank home loan through Mortgage Plus, individuals will require to submit other information such as the green South African I.D. document, proof of permanent residency and salary slips will have to be submitted with the actual signed application.

First time home buyers could qualify for a 104% loan where the additional 4% is to assist with transfer and registration fees.  Individuals may also apply for an AccessBond where individuals are allowed to transfer surplus funds to other Standard bank linked accounts.  Installments will also increase if available money is transferred out of the AccessBond.

Ordinary Standard Bank home loans are only offered to the loan to value of 95% where the individual will have to provide the additional 5% of the bond and cater for other bond costs.  Individuals normally provide the outstanding amount in cash or via a personal loan.

Various options are available to cater for customer specific needs and include interest rates which are either fixed or variable.  Fixed interest rates on a Standard Bank home loan simply means that interest charged on your home loan will never change even if country wide interest increase or decrease over time.  Current interest rates, as from November 2010 on Standard bank home loans are charged at 9% (and is variable) but individuals may be charged at a higher or lower rate depending on their credit score rating.

Insurance to cover the value of the structure is also compulsory and need not necessarily have to be taken out through Standard Bank. Standard Bank offers two types of structural insurance:

• Home Loan Protection Plan
• Home owner’s Comprehensive Insurance Policy

Mortgage Plus Home Loan division may also provide individuals with a Pre-qualification certificate which is valid for three months. It allows individuals time to shop around for a property of their choice. It could speed up your application process and Standard Bank will only need to assess the actual property for the final process.

Interested individuals can also use the Mortgage Plus website to calculate and apply for Standard Bank home loans and to find other valuable information.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Questions on termination of home loans

Although the public’s knowledge of how to obtain a mortgage bond and how to comply with the National Credit Act has increased markedly, two questions about the termination of bonds crop up regularly, says Rob Lawrence, National Manager of Rawson.

The first of these relates to the penalties charged by banks for the early cancellation of a bond when the property that is the underlying security, is sold.

All banks, says Lawrence, are entitled to and usually do charge three months penalty interest on the outstanding bond balance when the bond is cancelled before the term expires. However, this can be avoided if the owner gives the bank three months notice in writing of his intention to cancel the bond.

“As soon as the house is put up for sale,” says Lawrence, “the seller should advise his bank of his intention to cancel. As most homes take at least one month to sell and as the transfer period is usually two months, this will usually give the seller sufficient time to comply with the bank’s three month notice requirement and the penalty therefore falls away.”

Should a sale go very quickly, it is sometimes possible, says Lawrence, to delay transfer until the three months has expired. This arrangement can be made attractive to the buyer if he is offered beneficial occupation at a rate well below what he would be paying monthly on the bond.

The second question he is frequently asked, says Lawrence, is whether the bond should be kept open after it has been paid off.

“Provided there is an ?access’ facility, our advice is almost invariably to keep the bond alive,” he says. “The reason is that this enables the bondholder to access a relatively cheap form of emergency finance again as and when he needs it.”

The banks, says Lawrence, will charge an administrative fee for keeping the bond open but this is not expensive and should, in his view, be seen as an ?insurance’ for times when cheap extra cash may be needed.

“It always pays to access finance through the bond rather than through a personal loan or an overdraft as the interest rate will be lower and the payback period far longer,” says Lawrence.

“In addition, often the homeowners’ comprehensive insurance is debited off the bond , so this is a good way to keep this benefit conveniently alive and ensure the property remains insured.”

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za