New Home Loans (Absa Bank, Nedbank, Standard Bank, FNB, Sanlam, SA Home Loans)

Buying a home is probably the single biggest investment you will make in your lifetime. It is not only a major financial commitment, but also an emotional experience that normally results in an exciting change in lifestyle.

Whether you are building your own home or buying an established property, you are investing in your future wealth and security needs. Your home could well become the foundation of financial independence for you and your family.

Features

- 100% loan to purchase price.
- The repayment term can be structured up to a maximum of 30 years – note that the general term is usually 20 years.
- The loan term may be increased or decreased at any time, at no additional cost. Your monthly payment however may be affected and could either increase or decrease, depending on the option you have chosen. If your repayment increases, the bank will need to assess that you can afford the new repayment before it can be changed.
- Choose the interest rate option that gives you the repayment structure you prefer – fixed or variable.

With the exception of Group Schemes that provide salary deductions, repayments will be made via a due-amount debit order.
- A larger bond can be registered than the amount of the loan granted.
- Link your home loan to Absa Internet Banking and Telephone Banking for electronic access.
- Further loan amounts may be applied for as soon as your property value increases sufficiently or when you want to extend/improve your property.
- Additional deposits can be made at any stage, which will immediately reduce your interest cost.

Gain immediate access to available funds via the Internet, telephone, ATMs or branches with FlexiReserve.
- Purchase multiple properties and link them to a single account.

Benefits

- No need to save for a deposit.
- Determine your own repayments by having a flexible term.
- By fixing your interest rate, you are not affected by rate hikes for the period which you have opted for.
- Save time and the hassle of having to go and pay your account physically with the due-amount debit order.
- Cut the cost and time when increasing your loan in the future (via a Further Advance).
- Transact hassle-free and cheaper electronically.
- The Further Advance option allows you to finance just about anything from purchasing another vehicle to improving   your existing home at more affordable rates compared to other finance mechanisms.
- You can save by depositing an additional amount into your loan or by opting to pay more than your monthly repayment.
- Have one repayment, one term and an interest rate for multiple properties.

Documentation required when applying for a Home Loan

- Fully completed and signed application forms
- Copy of Identity Document/Passport
- Proof of income
- Copy of Offer to Purchase (including property details)
- 6 months’ bank statements where income is reflected of which the last 3 months must be consecutive (only if applicant if not an existing Absa customer)
- Above also applies where commission is received.

If you want a Home Loan service that cuts through all the usual hassles and frustrations, contact us and we will take care of everything.

Call us now on (011)327-4489

www.mortgagepluscc.co.za

My Home From ABSA Bank Home Loans

The My Home product – for clients earning up to R15 142 p.m. (Joint Gross Household Monthly Income)

·         Loans up to 110% Loan to Value (LTV) and maximum 80% Risk to Value (RTV)

·         A training course is mandatory for all customers enjoying the benefit of a CRIS guarantee or where the loan exceeds 80% of the purchase price.

·         Credit Life Policy – Home Loan Protector Plan

·         30% Collateral Replacement Indemnity Scheme (CRIS)

·         Maximum loan size determined by affordability

·         Repayment term up to 30 years

·         Fixed rates are available up to 10 years

·         No further advances will be allowed under the CRIS proposition i.e. 1^st bonds only

Qualifying criteria

·         Earn ? R15 142 p.m. gross per month (either as a single or joint monthly household income),

·         In possession of a South African ID document

·         Show proof of regular income

Amount of loan

·      Maximum loan size determined by affordability (nett disposable income)

·         When buying an existing property the loan amount is paid to the seller on registration. If your new home is being built, portions of the loan are paid out to the builder at different stages in the building process.

At the same time, there are other costs charged to your home loan account:

·         Initiation fee – this is a fee charged by the Bank for setting up the home loan. This is a once-off fee.

·         Administration fee – this is a monthly administration fee which is included in your monthly repayment amount.

 Borrowers Education Process

·         Assistance required from the Attorney Panel to streamline the process with reference to Borrowers Education required – as specified under the special conditions on all My Home loan applications.

·         No action required by the consultant

Collateral Replacement Indemnity Scheme (CRIS)

·         The Collateral Replacement Indemnity provided by HLGC (Home Loan Guarantee Company) is a form of insurance against losses that may be sustained when selling a property in execution i.e. when the property is sold as a result of the customer no longer repaying their loan.

·         CRIS is a mechanism to provide finance to customers who do not have a full deposit (or other collateral  security) for the purchase of a property.

·         CRIS is available to applicants earning a joint gross monthly household income of    

      R15 142 or less, and who qualify for a home loan in terms of Absa’s normal   

      lending criteria.

·         The indemnity will provide cover for a period of five (5) years

·         My Home loan applicants who require CRIS must undergo Borrower Education

·         Borrowers Education compulsory for all those customers with loans in excess of

      80% of purchase price

·      Customers should only attend the Borrower Education after the loan has been  

      final granted.

Calculation of CRIS

Example no.1

bearing in mind that our Risk to Value (RTV) may not exceed 80%

• Purchase Price – R350 000
• Loan amount requested – R350 000 (100%)
• R350 000 x 80% = R280 000
• CRIS guarantee = R70 000 (20%)
• Absa’s exposure is limited to R280 000 and the RTV is limited to 80%  

Example no.2

• Purchase Price – R350 000
• Loan amount requested – R385 000 (110% LTV)
• R350 000 x 80% = R280 000
• CRIS guarantee = R105 000 (30% – maximum guarantee)
• Absa’s exposure is limited to R280 000 and the RTV is limited to 80%

To Apply for your ABSA bank Home Loan please go to www.mortgagepluscc.co.za