Mortgage Plus specialise in New Home Loans, Building Loans, Bond Switches, Further Loans and Debt Consolidation Home Loan through Absa Bank.
Absa has a mortgage industry market share of around 31%, which makes them the largest mortgage lender in South Africa. They have been moving away from the more traditional one-size-fits-all approach and, as a result, now offer five different home loan products to meet the specific needs of individual borrowers. Two of these products are aimed at consumers wanting to build their own homes and at consumers wanting to buy-to-let.
The remaining three products target consumers who buy for more traditional reasons. These are:
- Absa Home Loan
- First-time Home Loan
- MyHome
The Absa Home Loan product comes with a host of optional and supplementary features and is completely customisable.
Features and Benefits
Some of the features and benefits of the Absa Home Loan include:
- Loan Term
- Loan terms of up to 30 years are granted. There is no charge if you increase or decrease the term of your Absa Home Loan.
- Financing
- Financing is provided for up to 100% of the purchase price. This means that there is no need for you to save up for a deposit.
- It is possible to register a bond larger than the financing granted. This means that you can conveniently increase the loan amount at a later stage without incurring extra costs.
- You may apply for additional financing (Further Advance) when your property value adequately increases. This additional financing can be used for home improvements or big ticket purchases such as a motor vehicle.
- Allows linking of multiple properties to a single mortgage account. This offers you the simplicity of a single term, a single interest rate and a single repayment.
- Presents you with a choice between fixed and variable interest rates. Interest rates can be fixed for up to ten years.
- Transacting
- Electronic access is provided via Internet and Telephone Banking to enable account monitoring and management, payments and access to funds. This saves costs and time.
- Additional deposits are allowed at any time. By making additional deposits, you save on interest.
To qualify for the Absa Home Loan, you need to earn a minimum of R 7,500 per month and meet the Absa credit requirements.
Comment
The Absa Home Loan only applies to the purchase of residential properties and does not cover upfront registration and transfer costs.
First-Time Home Loan
The First-Time Home Loan is designed for first time home buyers and structured to cover both the purchase price and the upfront registration and transfer costs.
Features and Benefits Some of the features and benefits of the First-Time Home Loan include:
- Loan Term
- Loan terms of up to 30 years are granted.
- Financing
- Financing is structured to cover 100% of the purchase price plus the 8% transfer and registration costs that comes with buying a new home. The 8% can either be repaid over the lifetime of the loan or over a shorter period. Because 100% of the purchase price is financed, there is no need for you to save up for a deposit.
- Offers a choice between fixed and variable interest rates. Interest rates can be fixed for up to ten years.
To qualify for a First-Time Home Loan, you need to earn a minimum of R 6,000 per month (single income) or R 10,000 per month (joint income), meet the Absa credit requirements and be a first time home buyer.
Comment
The minimum amount that you can apply for on a First-Time Home Loan is R 120,000. It is also important to note that you will need to buy life cover if you qualify for the loan.
MyHome
The MyHome home loan product is designed to bring property ownership to consumers whose income or inability to prove income would normally disqualify them from buying a house.
Features and Benefits
Some of the features and benefits of MyHome include:
- Loan Term
- Loan terms of up to 30 years are granted.
- Financing
- Financing is provided for up to 100% of the purchase price. No deposit is required.
- Interest rates can be fixed for up to ten years, meaning that you will be protected against rising interest rates.
To qualify for MyHome, you need to earn less than R 7,500 per month, meet the Absa credit criteria and possess a valid South African Identity Document. If you are unable to prove income, Absa can help you by means of their TargetSave product. Life and permanent disability cover is mandatory.
Comment
If your MyHome loan exceeds 75% of the value of the property, you will need to attend a compulsory training course. In addition, a due-amount debit order is the only method of payment that will be accepted by the bank.
For more info on the following, please contact us at 011 327 4489*
Please Note* all services through Mortgage Plus is free of charge.
