ABSA Home Loan

The Absa Home Loan enables you to finance residential property including vacant land.

This is the generic Home Loan, which can be tailor-made to suit your requirements by adding various features and options to suit your requirements.

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 deposit.
Determine repayments by having a flexible term.
By fixing your interest rate, your rate wont change for the period which you have chose.
Set up a debit order.
Cut the cost and time when increasing your loan in the future (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.

Qualifying Criteria

A monthly income of at least R 7 500 (single or joint) is required.
All other normal credit criteria apply.
Only residential properties will be financed.

Costs and Repayment

Once registration of the bond has taken place, the Usury Act provides for certain fees that will be debited to your home loan account. These are:
- Initiation fees - this is a once-off fee charged for initiating the home loan application in readiness for registration.
- Service fee - a monthly fee to cover all administration costs
Interest is calculated on the daily outstanding balance and capitalised (debited) monthly on the repayment due date. Unless otherwise requested, the repayments due day will be the first day of each month.
The preferred method of payment is per debit order - although other repayment methods may be utilised to repay your home loan (for example electronic transfers, cash, cheque deposits, salary deduction or stop orders).
Monthly repayments must be met in terms of the mortgage loan agreement. In case of default, normal recovery procedures will apply.

Transacting on your account

Loan repayments are generally structured on a monthly basis.
Withdrawals can only be made from your Home Loan if FlexiReserve has been set up on the account.
You can transact on your home loan via Absa Internet Banking, Telephone Banking or at any Absa branch.
Telephone and Internet Banking can be used once you link your Absa Home Loan account to an Absa transactional account and have registered for Telephone and Internet Banking.
Joint accounts require all signatures to transact, or a general power of attorney for one party to transact on the account.

First-time Home Loan

Although one home loan is granted, the account is set up in such a way that the cost portion is separate from the purchase price.

By structuring costs over a shorter repayment period means you pay less interest, however, you can select any term as long as it doesn't exceed the term of your primary loan.

Features

Up to a 108% home loan to cover all costs associated with purchasing a home.
You have the option to repay costs over a shorter period - saving you huge amounts on interest! (Absa recommends a 5-year term for repayment of costs. However, you determine the term for this loan, as long as it is less than the term of the main home loan account).
You may opt to repay your loan back over a maximum of 30 years
Structure each account uniquely with its own term and interest rate (fixed or variable).

Benefits

You don’t need upfront cash to pay for transfer and registration costs.
Access to the property market.
Save by paying the costs portion off quicker.
Flexibility of account structure.

Qualifying Criteria

You have to be a first-time home buyer
Only individuals with a regular and reliable source of income will qualify
A single monthly income of R6 000 or a joint monthly income of R10 000 is required
The minimum loan amount is R120 000
Life cover is compulsory

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