Absa Home Loans

Absa home loans could be the solution you need if you are looking for a loan to buy your dream home. They are designed to cater for a wide variety of needs.

Anyone can apply for Absa home loans, whether you are buying your first home, buying to let, building your home or switching your home loan to Absa.

Buying a home is a huge investment which involves a lot of money. Therefore, the process needs to be done properly to avoid making costly mistakes.

Even though it’s a huge investment, you’ll find that buying a home is easier than you think when everything is done the right way.

In this article, we will tell you about the things you need to know in your home buying journey

Types Of Absa Home Loans Available

1. MyHome Loan

If you earn a single or joint gross monthly household income of R25 400 or less, you can qualify for a home loan of up to 100%.

In addition, Absa will give you 50% discount on bond registration fees, and zero initiation fees. Zero initiation fee means you will save approximately R6 037.50.

Flexible repayment terms of up to 30 years.

A choice of variable or fixed interest rate.

Also, you’ll get access to great insurance and retirement plans.

To apply you’ll need;

• A copy of the offer to purchase (OTP) containing the seller and purchaser’s details and the purchase price

• Copy for each participant: Green barcoded ID/Smartcard (both sides), passport, permit, Refugee ID
• Marriage or divorce certificate if surname in identity document differs to surname on application
• Proof of residence
• Latest payslip (only one required for salaried individuals).
• Three months’ bank statements showing the latest three salary deposits.
• For Absa customers, statements can be sourced internally for commission, overtime earned, subsistence allowance, shift allowance or travel claims. Consecutive payslips for 6 months to be provided.

2. Young Professionals Home Loan

Are you a young professional with an NQF Level 8 or higher and are under the age of 35? If your answer is yes, then there is great news as you can qualify for a home loan of up to 105%!

In addition, Absa will give you 30% discount on bond registration fees, and you’ll get access to great insurance and retirement plans.

Flexible repayment terms of up to 20 years.

A choice of variable or fixed interest rate.

Also, you’ll benefit from access to financial planning consultations. To get access you can send an e-mail to virtualadviser@absa.co.za and you will get a consultation or needs analysis on retirement planning, savings and investments.

To apply you’ll need;

• Fully completed Offer To Purchase (OTP) with seller and purchaser’s details, purchase price and Copy of your 4 year degree at NQF level 8 or higher i.e. (honours)
• Copy of your green barcoded ID, smartcard (copied both sides), passport
• Marriage / divorce certificate if surname in identity document differs to surname on application
• Proof of residence
• Latest payslip (Only one (1) required for salaried individuals)
• Three (3) months bank statements required evidencing latest three (3) salary deposits. NOTE: For Absa customers, statements can be sourced internally
• If commission / overtime earned / Subsistence allowance / shift allowance or travel allowance – Six (6) months consecutive payslips to be provided

3. Private Banking Home Loan

Do you have an Absa Private Banking Account? If your answer is yes, you’ll be happy to know that you get a direct point of entry on all your home loan needs.

Furthermore, you get the convenience you expect by getting one-on-one specialized service. That is, you’ll get a dedicated private banker to guide you through the options and solutions available to you.

A choice of variable or fixed interest rate.

Also, you can expect customized solutions to meet your needs.

To apply you’ll need;

• Earn a gross monthly income of R62 500
• A valid, bar-coded South African identity document
• An offer to purchase (if purchasing a property)
• Your latest salary advice or income statement if self-employed
• Provide consent for three (3) months’ bank statements if banking with Nedbank or Standard Bank, otherwise provide three (3) months’ bank statements if you’re not banking with Nedbank or Standard Bank.

4. Loyalty Home Loan

This is a home loan you can get if you are selling your home financed by Absa and buying your next home with Absa Home loans.

Absa will reward you for staying with them.

Firstly, you’ll get a 25% reduction on your home loan initiation fees.

Second, on registration of your bond, 0.5% cash back on the value of your new home loan up to a maximum of R6 000.

A choice of variable or fixed interest rate.

Home loan repayment terms of up to 30 years (can be reduced or increased at any time at no cost).

No 90-day early settlement fees.

Also, you’ll benefit from access to financial planning consultations. To get access you can send an e-mail to virtualadviser@absa.co.za and you will get a consultation or needs analysis on retirement planning, savings and investments.

To apply you’ll need;

• A valid, bar-coded South African identity document
• An offer to purchase (if purchasing a property)
• Your latest salary advice (or income statement if self-employed)
• Provide consent to request three (3) months bank statements if banking with First National Bank (FNB), Nedbank or Standard Bank, otherwise provide three (3) months bank statement

5. Investment Home Loan

Are you planning on buying to let? If yes, you can apply for the Absa Investment Home loan.

You’ll be able to use your existing rental leases towards your affordability.

Absa has partnered with TPN, offering you a range of tenant management solutions and tools at up to 25% discounted rates.

One great benefit is Absa Law For You. With Absa Law For You, you’ll enjoy the advantage of legal services on call whenever you need and with up to R200 000 litigation cover per year.

Tips on what you need to know before investing in a property

1. Gather as much knowledge as you can on investment property. You can do this by reading blogs on property investment such as this one and looking at online resources.
2. Once you have as much knowledge as possible, you need to research the specific area and property type you want to buy. You need to take into consideration things such as level of security in the area, is it close to shops or entertainment. Also, the type of tenant you want to attract; single, partners or families.
3. The third thing you’ll need to do is work out the costs. If your investment is going to be successful, you’ll need a solid financial plan. This involves calculating costs such as purchase price, rates & taxes, utilities and monthly maintenance.
4. If you plan to sell your property in the future, remember you’ll be liable for capital gain tax. This is a tax you pay to SARS for the disposal of an asset. To find out more speak to a tax consultant.
5. Work out your expected rent for the property you have in mind and aim to be cashflow positive as soon as possible.
6. Consider your investment time frame. How long will it take for you to be cashflow positive and not have to supplement the rent.

6. Absa Home Loans – Building Loan

This Absa Home loans solution is ideal for those that wish to build their own home.

Before you can apply for your building loan, you’ll need to find vacant land to build your home.

Next, you’ll need to find and architect to have building plans drawn up and approved.

After this is all done, you’ll need a builder.

TIP:  Your builder is the most important part of your project. Make sure your builder is registered with the National Homebuilders Registration Council  (NHBRC).

A legal contract between you and the builder helps to manage processes should there be any disputes or snags.

Once the lad is available and plans have been drawn and all the contracts with the builder have been signed you can apply for your building loan.

You’ll need the following documents;

• Building contract between you and your builder
• Bill of quantities, which is a detailed outline of the different phases that is part of the building process.
• Tender and schedule of finishes, which is a detailed list, compiled by your builder, explaining exactly which materials will be used throughout the building process and the required quantities of each material.
• Building plan
• Your builder’s NHBRC Registration Certificate

7. Switching Your Home Loan To Absa

Absa has made switching as simple as possible, cost-effective and quick.

Not only will Absa help you switch your home loan, they will even pay some of the costs!

Zero initiation fee – you save R6 037.50

30% discount on attorney and bond registration fees

In addition to 30% discount, get up to R30 000 to cover bond registration costs.

Negotiate a new repayment term for your home loan to suit your plans and your pocket.

Absa home loans calculator

The Absa home loans calculator is a useful tool on the Absa website.

This tool allows you to put in the price of the home you wish to buy and it will automatically calculate your monthly repayments for you. In addition, it will give you all the indicative fees you’ll need to take into consideration.

By making use of the Absa home loans calculator you’ll be able to have an idea if you can afford the monthly repayments.

Illustrative Example

Price of the house: R2 500 000.00

Deposit: R0.00

Interest Rate: 7%

Repayment Terms: 20 Years

Total repayment: R 4,651,793.61

Total interest: R 2,151,793.61

Transfer Fees:

Deeds office: R 1,778.00
Attorney transfer: R 33,860.00
VAT: R 5,079.00
Total: R 40,717.00

Bond Fees:

Deeds office fees: R 1,778.00
Attorney bond registration: R 33,860.00
VAT: R 5,079.00
Total: R 40,717.00

Transfer duty: R 91,000.00

Initiation Fee (VAT inclusive): R 6,037.50

Total bond, transfer and initiation fees: R 178,471.50

Note: Absa provides the Absa home loans calculator for convenience to you to provide results based on your input and assumptions and it should not be used for any other purpose. Always contact them directly for verification on any of the information provided.

Conclusion

Absa is a truly African brand whose purpose it to bring your possibility to life.

In this article, we saw that they cater for a wide variety of needs for those seeking to own a home.

Absa home loans provide different solution to meet different needs. Whatever your needs, we recommend you try them and they will help you every step of the way in your home buying journey.

Absa Home Loans Contact

If you have any question or you would like to get more information, you can contact Absa directly using the Absa Home loans contact details below.

Telephone: 0860 111 007

Email:

General account enquiries: home@absa.co.za

Home loan applications: propertyhub@absa.co.za

Help with home loan payment plans: bondrs@absa.co.za

Homeowners comprehensive insurance: adminhoc@absa.co.za

Home loan protector plans: polserv@absa.co.za

For other loans from Absa see articles, Absa Vehicle Finance and how to apply for an Absa express loan.