Latest Home Loan
Interest Rate
9%

When the entrepreneurial Tom Boardman took control of Nedbank in 2004, he developed an aggressive three-year turnaround strategy (Fix – 2005; Consolidate – 2006; and Grow - 2007). for the then-faltering Group. In the three years that followed, the bank – much to the surprise of many sceptical investors - did not miss a single one of their turnaround strategy targets. Their interim results for the half year ending 31 December 2007 that were announced on the 27th of February proved that, yet again, there was no slacking back.

The Group’s performance for the period was first-rate. Their retail banking division has grown from an iffy R 564 million to a worthy R 2 billion since 2004, showing that the bank’s drive to be the most affordable bank in the country is making good headway. Nedbank is undisputedly putting its money where its mouth is. 2007 saw them hacking away at the remaining superfluous bits and pieces in their fee structures, bringing them to a total fee reduction of 19% since 2006 – an effort that was rewarded by a massive 37% growth in their retail banking division.

Nedbank’s earnings from their home loan products are up by more than 25%, a percentage they are looking to increase even further by the time that they release their full year results in the second half of this year. To achieve their goal, Nedbank aims to “compete across all client segments with differentiated products and tailored distribution. A key part of this is the implementation of our 'bank for all' strategy.”

In addition to their Buy-to-Let and Building products, Nedbank has two flexible mortgage products through which to meet their targets.

These are:

	Ordinary Home Loan
	Alphabond

Ordinary Home Loan

The Ordinary Home Loan is a flexible home loan that can be tailored to meet individual requirements. It suits prospective home buyers who have the cash to pay the registration and transfer fees of their new property.

Features and Benefits

Some of the features and benefits of Ordinary Home Loan include:

	Loan Term
	Loan terms of up to 30 years are granted.
	Financing

Up to 100% financing can be provided.
The minimum loan amount is R 70,000. There is no maximum set.
Presents you with a choice between fixed interest rates and variable interest rates.
Ability to register a second home loan
Includes Readvance. Readvance provides you with access to the difference between your original loan amount and that portion of the principal that you have already repaid.

Transacting

You are allowed to make additional deposits and / or to pay more than the minimum amount every month in order to save on interest and to reduce your term. Includes NedRevolve, an add-on that allows you to either access the additional deposits you make into your home loan account or to use as a method to accrue interest-free savings.

Qualifying Criteria

To qualify for Ordinary Home Loan, you will need to meet Nedbank’s credit requirements, earn a minimum of R 2,500 per month – singly or jointly - and possess a valid South African Identification Document.

Comment

The Ordinary Home Loan can be used for the purchase of an established residential property or to buy vacant residential land for development purposes.

Alphabond

Alphabond is designed for first time home buyers who do not have the cash to pay the upfront registration and transfer costs of a property.

Features and Benefits

Some of the features and benefits of Alphabond includes:

	Loan Term
	Loan terms of up to 30 years are granted.
	Financing

You have a choice between a 108%, and a 104% home loan. If you choose 108%, there is a guaranteed cash back. If you opt for a 104% home loan, you only start making your repayments in month four.

If you prefer a home loan of less than 100%, Nedbank will offer you a rates concession.

The minimum loan amount is R 70,000. There is no maximum set.
Choose between a fixed interest rate and a variable interest rate.
Ability to register a second home loan.
Includes Readvance.
Readvance provides you with access to the difference between your original loan amount and that portion of the principal that you have already repaid.

Transacting

Payment by debit order compulsory.
You are allowed to make additional deposits and / or to pay more than the minimum amount every month in order to save on interest and to reduce your term.

Includes NedRevolve after your home loan is less than 100%. This is an add-on that allows you to either access the additional deposits you make into your home loan account or to use as a means to accrue interest-free savings.
Access to Further Bond. Further Bond allows the registration of an amount of money additional to your current, registered mortgage.

Qualifying Criteria

To qualify for Alphabond, you have to be a first time home buyer, meet Nedbank’s credit requirements, earn a minimum of R 2,500 per month – singly or jointly -, and prove stable employment in the same career stream for two years or longer.