Nedbank Home Loan
 
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Nedbank offers a range of flexible home loan solutions designed to help you afford the home you've always dreamt about.
Thanks to Nedbank's competitive home loan interest rates and the ability to tailor mortgage loans to suit the individual homebuyer's needs, you could be a whole lot closer to owning a home than you think!
Whether you are a first-time homebuyer or a homeowner seeking to get approval for a second home loan, Nedbank has a financial solution that's right for you.
 
 
Features and Benefits
  • Minimum loan R 70,000
  • Maximum repayment to income: 30%
  • Term: up to 360 months
  • Loan to property value: up to 108%
  • Interest rate: fixed or variable interest rate. You may apply for a rate concession once the loan to value falls below 100%.There are two product options:
  • Costs capitalised: You can register a Home Loan of up to 108% to cover your start-up costs.  The additional 8% will cover the tariff fee, registration costs and transfer duty as well as a guaranteed cash-back, which varies according to the size of your loan.
  • Initial payment holiday: You are granted an initial three-month payment holiday and only start paying off your Home Loan in your fourth month.
  • A Readvance is available once your loan to value falls below 100%, usually this is only after about 5 years.
  • NedRevolve - provides you with flexibility and control to manage your finances more effectively and is an ideal vehicle to accumulate tax-free savings. 
  • Further loan without registration (Readvance) - gives you access to the capital amount already paid off up to the original loan amount without having to register a new Home Loan.
  • Further loan with registration - allows you to register a second Home Loan to extend or improve your present home. 
  • Nedbank Accelerated Payments - enables you to pay off your Home Loan sooner than the term stipulated in your Home Loan agreement.
 
 
Home Loan Products
 
 
Alphabond: First Time Home Buyers
 
AlphaBond is specifically designed to cater for the unique financial needs of first-time homebuyers, and enables first-time buyers to loan up to 108% of the total bond amount.

Qualifying Criteria

  • South African citizenship
  • Clear credit record
  • First-time buyer Instalments to be paid by monthly debit order
  • Single or joint gross monthly income of R2 500 is required
  • Stable employment in the same career stream for not less than 2 years

 

 
Building Loan: Construction Loan
 
Nedbank’s Building Loan is a mortgage solution used to finance the construction of a dwelling, as well as additions or improvements to an existing residential building.
 
Qualifying Criteria
  • Nedbank will assess your application on an individual basis.
  • Generally, a minimum gross (single or joint) monthly income of R2 500 is required

 

 Buy To Let - Investment Property

 
A Buy To Let home loan can be described as a loan used to purchase residential property with the intention of renting it out to a tenant.
A Buy To Let property is for investment purposes, rather than to live in it yourself. Nedbank’s Buy To Let mortgage loan has been designed specifically for customers who want to accumulate wealth through the residential property investment market, and can be tailored to meet your financial needs.
 
Qualifying Criteria
 
Your minimum joint monthly gross income should be at least R 30,000.  However, Nedbank undertakes to consider any well-motivated applications on an individual basis.
 
 
Home Income Plan: Senior Citizens         
 
The Nedbank Home Income Plan is a home loan product that allows you to use the value of cash (equity) “locked” in your home, while at the same time being able to live in it. In short, the Nedbank Home Income Plan provides you with a loan against the value of your house. This loan is paid out in cash.

Features and Benefits
  • Minimum loan amount is R200,000.
  • The maximum loan to value of the property can be as high as 45%.
  • Nedbank can offer the plan if your property is still bonded, provided the existing bond is settled and closed prior to the new bond registration.
  • If your property is still bonded, the outstanding bond may not exceed 15% of the total loan amount released.
  • No Negative Equity guarantee - under certain conditions the guarantee will make up the difference if the funds released upon the sale of your property is less than the balance of the plan.
  • The loan becomes due and payable after the 5-year term.
  • At the discretion of the bank, a new loan may be granted.
  • You are allowed to release the value in your property in the form of a tax- free:
  • Lump sum payment
  • Monthly draw-downs or
     a combination
  • You do not make monthly capital repayments – the loan needs to be repaid at the end of the five-year loan term.
  • The interest rate is fixed for the period of the loan.
  • Professional and realistic valuations done on your property.
  • Sound financial planning
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Qualifying Criteria

  • Aimed at individuals of 65 - 85 yrs. (Exceptions may apply)
  • Only South African citizens.
  • Applicants must be natural persons (No CC’s PTY’s, Trust’s)
  • Co-applicants may only be two natural persons
  • No income requirement.
  • A Nedbank transactional account is required to receive the monthly payments.
  • The property must be your primary residence.
  • The property should meet the minimum future growth potential as specified by our property risk model.
  • Subject to an independent valuation.
    There may not be any other loans secured by the property being offered as security.
  • You must ensure that you have homeowner’s insurance and that your
    property is well maintained so as to preserve and enhance its value.
 
 
Nedbank HomeVision          
 
Nedbank’s HomeVision is a home loan solution that gives you the opportunity to register a bond, higher than the required loan amount, creating a surplus amount that can be accessed at a later stage.
The HomeVision facility (surplus amount) will be available to you when your property value and affordability has increased. Simply apply for the surplus funds when needed, bearing in mind that each application is subject to our credit approval policy.
 

Nedbank's latest fees deliver more great news for clients!

As of 1 July 2007 Nedbank has reduced bank fees for its retail clients – for the second year in a row. While other banks have selectively reduced some fees and increased others, Nedbank has not increased any of its retail fees for individuals since July 2004.

Highlights of the fee changes for 1 July 2007 include:

  • Retail banking fees reduced by an average of 6%.
  • Saswitch convenience fees reduced by 16% – from R5,95 to R5,00.
  • High transaction penalty fees on Mzansi Account scrapped.
  • 24 fees scrapped in total, including 18 fees scrapped permanently and free SMS Banking and Telephone Banking for a year, making up a further 6 fees valid till June 2008.
  • Huge strides made in simplifying fees.

Nedbank has reduced fees by an average of 6%.

This means that, together with the fee reductions in 2006 of over 13%, the average Nedbank retail client will have experienced more than a 19% reduction in bank fees since July 2006.

This latest review includes price reductions on 6 fee items, the scrapping of 18 fee items permanently and 6 fee items for one year. In addition, dozens of previously complicated fee formulae across various products and channels have been simplified, making it easier for clients to understand exactly what they are paying in bank fees each month.

This guide is designed to make our fee adjustments easy to understand and to help you choose the right option for your lifestyle and budget. The fees detailed in this guide are effective from 1 July 2007.