SA Home loans are mortgage specialists who provide a range of finance products to meets the needs of homeowners.
Different homme homeowners will have different needs. For this reason, SA Home loans home financing solutions are tailored to meets the needs of different clients.
Buying a home is big investment and it’s important that you get the process right. And when you do get the process right it can be a rewarding journey.
In this article, we will take a detailed look at the different SA Home Loans options available and what you need to know in order to apply.
Before we get started with home loan options, let’s get an overview of SA Home Loans.
SA Home Loans Overview
SA Home Loans is a mortgage finance company in South Africa. It was founded in February 1999 in Durban, South Africa.
The company was introduced to the South African public as an alternative way of getting finance to buy a home.
Up to this time banks were providing the majority of home loan finance in South Africa. However, their interest rates were very high thus making it expensive to ordinary South Africans to buy a home.
They became the game changers by coming into the market and introducing lower interest rates until competitors lowered their interest rates.
In 2001 they pioneered a new way of funding home financing in South Africa, by linking clients directly to the capital markets, find out more here.
Their vision is to be South Africa’s most trusted home loan provider, by putting their clients first and providing an amazing experience in their home ownership journey.
SA Home Loans has three shareholders namely Standard Bank Group Limited (50%), he Public Investment Corporation (25%) and Bolatja Hlogo Consortium (25%).
Home Loans Options
1. 20 Year Loan
Interest rate is variable and is tailored to your risk profile.
Flexible repayment term up to 20 years.
Available to clients purchasing a new home, switching an existing home loan, or refinancing an existing property.
Access surplus funds on property value through a variety of further lending options.
In-house insurance options available to protect your investment.
2. 30 Year Loan
The 30 Year Home Loan is exclusive to clients buying a new home and is not available to Switch clients.
This bond is only available to clients under the age of 45 years.
Variable interest rate tailored to your risk profile.
Repayment term of 30 years.
The longer loan term allows you to enjoy a lower monthly instalment.
A range of price options within the housing development and no transfer duties.
No transfer duties when buying off-site from the developer.
In-house insurance options available, to protect your investment.
20 Year Loan vs 30 Year Home Loan
A question usually arise, which option is best?
The truth of the matter is that your pockets always detect which option to choose.
Others have flexible budgets and would prefer to pay their home loan over a short period. If you are this type of client then you should definitely go for the 20 Year loan.
However, others have tight budgets and would prefer to have lower monthly payments. If this is the case with you, it would be advisable to take the longer term 30 Year loan.
Note: As with any loan, the longer you take to pay the more expensive the loan becomes. This is because you’ll pay more interest and administrative fees over a longer period.
Illustrative Example:
Home loan amount: R1 000 000
Term of loan: 20 years
Indicative Interest rate: 10%
Monthly instalment: R9 650 per month
Total cost of loan: R2 316 052
Home loan amount: R1 000 000
Term of loan: 30 years
Indicative Interest rate: 10%
Monthly instalment: R8 776 per month
Total cost of loan: R3 159 258
3. Edge Home Loan
This is a 23-year home loan where you pay the lowest instalment, only the interest, for 3 years before reverting to a standard 20-year home loan.
No capital repayments at the end of the 23-year term, your home is fully paid off.
In-house insurance options available, to protect your investment.
Special Loans Options
1. Affordable Housing Package
This is a home loan that makes home ownership more accessible.
Variable interest rate tailored to your risk profile.
Flexible payment term up to 20 years.
Available for a combined household income of R8 000 or more per month.
Finance up to 100% of your purchase price without a deposit.
Bond attorney costs discounted by 50% unless covered by a developer.
In-house insurance options available to protect your investment.
2. 100% Home Loan
You can finance the full purchase price of your home, with no deposit.
Variable interest rate tailored to your risk profile, with no deposit needed.
Flexible payment terms of up to 20 or 30 years. See above for the difference between the 2 terms.
Bond attorney costs discounted by 50% unless covered by a developer.
In-house insurance options available to protect your investment.
SA Home Loans Application
The application process for a home loan involves 10 steps as follows:
- Know your affordability by making use of the SA Home loans calculator (see below)
- Choose your preferred way of applying. You can apply online, call their sales team (details below) or visit your nearest branch.
- Sending required documentation (see below). PLEASE NOTE It’s very important that you send the correct and all required documentation to avoid delays in your application.
- Credit approval after credit assessment. This will determine how much you qualify for. Also, approval is subject to the completion of property valuation.
- Property valuation by an expert appraiser.
- Evaluate and sign Letter of Acceptance (LOA).
- Conveyancing, which involves attorneys preparing necessary bond registration documents.
- Lodgement which involves bond registration after signing prepared documents by attorneys.
- Wait for registration of your bond at the Deed’s Office. This usually takes approximately 12 weeks.
- Personalised services from SA Home Loans after registration will continue to make sure you have everything necessary for your new home.
What documentation is required?
- Proof of income: your latest salary slip. If you earn commission or overtime, please provide the latest 3 salary slips (for both applicants if applicable)
- Latest 3 months personal bank statements (for both applicants if applicable).
- Personal assets & liabilities statement for loan amounts over R1 500 000.
- Copy of your ID document (for both applicants if applicable).
- A copy of marriage certificate or ANC contract (if applicable).
- Copy of the purchase agreement.
- Latest 3 months bond statements.
- Latest rates/levy statement/utility account statement.
SA Home Loans Calculator
The SA Home loans calculator is a useful tool found on their website. You can use it to calculate affordability, repayments amount, switching costs and refinancing costs.
We recommend making use of the SA Home loans calculator before submitting your loan application.
By making using of it you’ll have an idea in advance how much your home loan will cost you.
In addition, you’ll be able to tell if you can afford the home loan or not and save yourself valuable time if you can’t afford.
What else do you need to know?
1. What are the interest rates?
There is not one interest fits all. This is because interest rate is set based on many variables, most of which are determined by the client.
For example, it will be dependent on how much deposit can you afford to put down towards the purchase.
Typically, a larger deposit will qualify you for a lower interest rate.
2. How long does it take for SA home loan to be approved?
It is difficult to set a time period as a credit assessment will need to be completed to determine your affordability.
In addition, much is also depended on the application method you use and how quickly you submit all required documentation.
However, SA Home loans will attend to your application with urgency to make sure you get your dream home ASAP.
3. What fees can you expect to pay?
You can expect to pay transfer duties and your bank’s initiation fees.
If the property is being purchased from a developer, no transfer duty is payable.
The National Credit Act now allows finance providers to charge their customers up to R6 037.50 (R5 250+VAT) initiation fees.
4. What is FLISP?
FLISP stands for The Finance Linked Individual Subsidy Program.
It is a government housing subsidy designed to make owning your first home more affordable.
See article FLISP: The Finance Linked Individual Subsidy Program.
Final Thoughts: Should You Get A Home Loan From SA Home Loans?
The question is why not?
As we discussed earlier, they became game changers to the home financing industry when they were launched.
They have continued to do so over the years, changing lives by making it possible for more South Africans to own their own homes.
Other home finance providers will also provide other financial services. But this is not the case with SA Home Loans, they’re South Africa’s Only specialist mortgage provider. It’s all they do, therefore they perfected home financing.
Also, because they are not a bank, they are flexible, approachable and service orientated.
In addition, they are completely honest and transparent in all their dealings. There are no fine print or hidden charges.
We definitely recommend them to get started on your home buying journey.
If you are interested in looking at alternatives, check out articles Absa Home Loans and Standard Bank Home Loans.
SA Home Loans Contact
If you have any more information, you required you can use the following contact details to get hold of them directly.
Client Service Helpdesk
Tel: 0861 888 777
Fax: +27 31 571 3150
Email: admin@sahomeloans.com
Sales Contact Centre
Tel: 0860 246 810 (Mon – Fri; 8am – 5pm)
Fax: +27 31 576 5863
Email: sales@sahomeloans.com
Home Owner’s Cover Claims
Tel: 0861 103 740 (24h hotline)
Email: insurance@sahomeloans.com
Arrears Queries
Tel: 0861 113 414
Email: losscontrol@sahomeloans.com
Head Office
Tel: +27 31 560 5300
Fax: +27 31 562 0362
2 Milkwood Cres,
Milkwood Park,
La Lucia, 4051