Standard Bank home loans are among the most popular home loan solutions in South Africa.
In this article, we are going to take an in-depth look at Standard Bank home loans and how you can use them to start your home buying journey.
In addition, we will guide you with insights, solutions and home buying tips so you can make your next big move with confidence. You will find this article useful whether you’re a first-time buyer, homebuilder or homeowner.
What Do We Know About Standard Bank?
Standard Bank is a licensed financial services provider in terms of the Financial Advisory and Intermediary Services Act and a registered credit provider in terms of the National Credit Act.
They are the largest banking group on the continent by assets offering universal financial services across sub-Saharan Africa.
Standard Bank has been offering banking services in Southern Africa for past 155 years. Also, they are available across 20 countries on the African continent.
They are one of the leading home loan providers in South Africa. To top it off, they strongly believe in fulfilling their purpose of helping South Africans own a home.
Here’s how they can assist you:
- New Home Loan:
- Urban Home Loan:
- Home Loan Protection Plan:
- Home Contents Insurance:
- Building Insurance:
- First Home Finance:
Standard Bank Home Loans To Buy A House
Buying a house is very exciting but if done the wrong way can turn out to be a nightmare. This is because buying a house is a huge financial investment.
To make sure you follow the correct process, we have put together important steps as suggested by Standard Bank, that you need to follow.
1. Work out what you can afford
The first and most important step is to work out what you can afford. There is no point in applying for Standard Bank home loans when you can’t afford it.
To get an idea of what you can afford you can make use Standard Bank bond calculators on their website. In addition, you will get an idea of what your monthly repayments will be over your agreed-upon terms.
2. Decide how much you want to borrow
The good news is that you can borrow up to 100% of the property’s purchase price.
Registering a bond for a higher amount means you can borrow extra later, without registering a second bond.
If you are a first-time buyer, you can get up to 105% for a purchase price of R1.8 million or less and use the extra 5% towards transfer and bond registration costs.
3. Find your dream home
The third step is a very exciting one but can also be a very stressful one. The excitement will come with having gone around viewing different properties, however, stress can come in if you don’t find what you want.
We advise you to check for signs of damp or structural damage when viewing properties. Also check for anything else that you will have to spend more money on once you’ve moved in, such as kitchen or bathroom renovations.
As an option, you might also want to have a look at repossessed properties for sale through online auction as transfer duties don’t apply to these properties.
4. Do research on the home
The fourth step is as important as any other. We advise you never to buy a property without doing any research on it.
You can make more informed decisions about buying a property when you know how old it is, what it last sold for, and how it compares to similar properties in the same or different areas.
Standard Bank offers free property guide to homes across South Africa.
You can get relevant information and key insights on the estimated value of your dream home, so you can buy with confidence.
5. Consider a property inspection
When you are buying a property, you might miss important details because of the excitement. To avoid making this mistake get a qualified property inspector to take a look at the property.
By getting a property inspection report is you will be made aware of areas that may need attention.
In addition, a property inspection report could save you from unforeseen expenses such as expenses for substandard workmanship or lack of maintenance.
6. Make an offer to purchase
Once you’ve found the home you want, done research and received an inspection report, you’ll need to put in an offer to buy it.
If your offer is accepted, you and the owner must sign your offer to purchase.
You may submit a copy of the offer when applying for Standard Bank home loans.
7. Apply for a home loan
You can apply for Standard Bank home loans on your own, or as a trust or business, or make a joint application with your spouse or partner.
How is application done? Application can be done online, or calling Standard Bank on 0860 500 000 between 8am and 5pm during the week.
Alternatively, speak to Standard Bank directly at your nearest branch.
What are the requirements? To apply for Standard Bank Home loans, you will need your South African ID, latest payslips and list of monthly expenses.
What’s next? A Standard Bank consultant will be in touch to confirm your home loan and personalised interest rate and arrange a time for you to come in and sign your home loan contract.
8. Insure your home
The last and equally important step is to apply for insurance. Whilst a lot of people usually skip this step thinking that they are saving money we always advise being prepared for the unexpected.
Standard Bank offers four types of insurance namely, building insurance, home contents insurance, home loan protection plan and car & home insurance.
Standard Bank Home Loans To Build A House
If you wish to build your own house you can apply for a building loan from Standard Bank. However, as with a loan to buy a house we advise you to make use of the Standard Bank bond calculators to know what you can afford.
To get approval for a building loan, you will need to meet certain conditions.
Let’s take a look at what you will need to get approval.
If you’re building off-plan in an estate or development, you’ll need an offer to purchase from the developer to apply for a building loan.
When you have the title deed to your land, to apply for a building loan, you’ll will need to present the title deed. Besides that, you have to present house plans, a contract between the builder and yourself, a detailed quotation, and a schedule of finishes from your builder to get approval.
There are a few things you will need to keep in mind:
- Once you’ve found the land you want and made an offer to purchase the land, contact Standard Bank to find out how much you qualify to borrow in principle. This will save you from before spending money on house plans, in the event you don’t qualify for a home loan.
- The builder you choose needs to be 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.
- After registering the land in your name at the deeds office, your plans must be approved by the local municipality or council before you start building.
- Eco-friendly systems must be approved by the bank.
- You may also need a community acceptance letter from your local homeowners’ association or estate, if there could be concerns over your innovative building plans affecting the value of surrounding properties.
- Homes need to be enrolled with the National Homebuilders Registration Council(NHBRC) at least 15 days before construction begins. This is very important because banks may not provide building loans for homes that aren’t enrolled.
- If your land is bonded with another bank, Standard Bank can’t finance your build. To finance your build through Standard Bank, you can switch your bond to them by giving the other bank 90 days’ notice. However, we advise you to first check if you qualify before giving notice.
Standard Bank Home Loans Contact
Here are some contact details you might find useful.
General Home Loan Enquiries
South Africa: 0860 123 001
Email: HomeNCar@standardbank.co.za
Insurance Quote
South Africa: 0860 123 999
Home Owners Insurance Claims
South Africa: 0860 123 444
Email: hocclaims@standardbank.co.za
Home Owners Insurance Services
South Africa: 0860 123 999
Email: silpolicy.admin@standardbank.co.za
Property Information Service
South Africa: 0860 123 001
Loan Protection Services
South Africa: 0860 123 999
Conclusion
As you can see applying for Standard Bank home loans is quite simple if you follow all the necessary procedures.
Don’t let excitement make you miss important steps in your journey to owning a property.
Take your time and make sure you have done enough research.
When all is in place, go to Standard Bank Online or visit a branch to apply for Standard Bank home loans and own your dream property.
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