Home Loans

Residential Finance

Is the financing of a privately owned property for residential purposes approved by a financial institution, eg. ABSA, FNB, Standard Bank, Nedbank and SA Home Loans.

Residential properties range from free standing units, Villas, Cottages, Apartments and many more. Ownership can be held by various entities i.e. Private individuals, Trusts, Close Corporations and is subject to the requirements of the bank.

Upon receiving approval from a Financial Institution and the client accepts the relevant financial institution offer in writing, a bond attorney will be instructed to proceed. The process of transferring the property into your name takes approximately 2-4 months.

The bond amount financed excludes registration and transfer costs. Residential Finance includes both Sectional Title and Full Title properties.

Building Loans

The purpose of a building loan is to finance the construction of a top structure.

The loan is obtained with the intention of erecting a new structure according to building specifications.

In majority of cases vacant stand and the structure can be financed simultaneously. However it is possible to apply for a building loan should you have a vacant stand registered in your name.

Once registered the purchase price of the stand will be paid to the seller. The balance of the loan will be paid to the builder in advanced stages in accordance with building phases. Payment to the builder will only be processed if the bank is satisfied that all their conditions and specifications have been met. No payment may be made without the owner's authorisation.

An important point to remember - The bank will only pay out for work that has been completed and will ensure that there are adequate funds available. The bank will only pay the final instalment once all the work is done.

Affordable Housing

The Affordable Housing market is defined very similarly by the different financial institutions yet each bank has a different criteria. For finance purposes the affordable market is categorized according to income.

Affordable Housing products have been tailored to cater directly to the needs of the low-and very low-income income households.

The Affordable Housing is the fastest growing market in South Africa and has become a specialised financial sector.

Further Advances

This is also known as a second bond and is usually utilised to finance improvements to an existing property or to finance the top structure on vacant land.

These loans are only available to existing home owners. The loan allows the home owner the opportunity to renovate and improve the property and gain the full value of the property on a resale.

Please note that the application, qualification and assessment process of a Further Advance is the same as that of a New Loan application. The bank requires 3 market related quotations for improvements along with the application.