Home Loans. Welcome home. Make yourself at home. Prosper.

Transcription

1 Home Loans Welcome home Make yourself at home. Prosper.

2 Contents We have everything you need 3 Getting a home loan 3 Choose the home loan that suits you 4 Home loan 5 Private Banking Home Loan 5 Family Springboard 6 MyHome Home Loan 6 Loyalty Home Loan 7 Buy-to-Let Home Loan 7 Building loan 7 Pension Powered Home Loan 8 International Mortgages 8 Absa HelpUSell 8 Options to suit your specific needs 9 Further Advance 10 ReAdvance 10 MultiPlan 10 FlexiReserve 10 Interest rate options 11 Repayment period 11 Insurance 12 Homeowner s Comprehensive Insurance 12 Absa idirect: Protection for your moveable assets 13 Absa Life insurance 13 Value-added solutions 14 Value Bundles 14 estatements 14 Absa Homeowner App 14 Bond calculator 14 Will 14 What to bring when you apply 15 Contact us 15

3 We have everything you need When you find the perfect house, flat, townhouse or piece of land on which to build your own dream home, you ll need a home loan to pay for it. Whether it s your first home, a second home or an investment home, we have the loan that ll suit your needs and budget. We ve also got you covered with a range of insurance products (home, life and personal effects cover), value-added extras and so much more. Getting a home loan To make the process easier, remember that you can also apply for your home loan online at absa.co.za You ll find all of the contact numbers and information about what documents you need to apply for a home loan at the end of this brochure. Home Loans Page 3

4 Choose the home loan that suits you Home Loans Page 4

5 Home loan A home loan lets you finance residential property, whether it s a freestanding house, a flat, a townhouse or vacant land. Most people choose a 20-year repayment term, but there s an option to extend the term to a maximum of 30 years. Once the application and approval process has been finalised, a bond is registered over the property at the Deeds Office as security for the home loan. Interest is calculated on the daily outstanding balance and then capitalised/debited monthly on the repayment due day. Repayments must be paid into the loan account on the required repayment due day. Monthly repayments must be met in terms of the home loan agreement. Unless another date is selected, the due day will default to the first of the month. Although the home loan is granted at a variable rate, once the loan is fully paid out, you can apply for a fixed-rate option. Private Banking Home Loan A dedicated and professional Private Banker will guide you through our range of innovative home loan options and structure a loan according to your individual requirements. The Private Banking Home Loan offers you: Expert advice and support from a Private Banker who will handle the application and transfer process for you Negotiated interest rates on your home loan if your Private Banker guides you through the process MultiPlan a product that lets you link multiple loan accounts, each with its own individual financial characteristics, to one credit facility FlexiReserve the option that lets you deposit and withdraw funds Access to Private Banking suites where you can conduct your banking and financial transactions in a private and exclusive environment. The Private Banking Home Loan is suitable for you if you: Earn a gross annual income of R Are or would like to become a Private Banking client Would like the flexibility and choice to structure your home loan to suit your needs. Home Loans Page 5

6 Family Springboard First-time home buyers often don t have the cash deposit they need to buy a property. If you re looking at a house that costs R1,5 million or less, you can ask a family member or friend to put the 10% deposit in an Absa Fixed Deposit Account (for collateral). The helper can ask to have this money returned to them once the loan reaches the original loan-to-value (LTV) level (subject to a credit assessment and property valuation). An added bonus is that both the helper and the first-time buyer benefit from this loan the helper earns interest on their money in the fixed deposit account and the first-time homebuyer can own their dream home. With the helpers collateral replacing the actual cash deposit required, the borrower will receive a 100% loan for the purchase of the property. The borrower must qualify for a loan equal to or greater than 90% of the purchase price, and must pass the bank s affordability assessment on a 100% loan on the purchase price. A 100% loan to purchase the property We cover 30% of the attorney bond costs up to a maximum of R4 200, provided that you use an Absa-preferred attorney. If the bond costs are more than this, you ll have to pay the difference A 50% reduction on your NCA initiation fees. MyHome Home Loan If you earn a joint or single monthly income of R a month or less, you can make owning your own home a reality. That s because, when you apply for a MyHome Home Loan, you ll get up to 100% financing and professional help every step of the way. A condition of this home loan is that you take part in our Borrower Education Programme, which: Guides you through all the costs and registration processes Explains all the financial requirements that come with owning a home Provides information about maintaining your home Helps you budget through the lifetime of your home loan Offers insurance and other value-added products. Note: You have to sign up for a life policy and Homeowner s Comprehensive Insurance (HOC) when taking up this loan. Finance Linked Individual Subsidy Programme (FLISP) FLISP is a government housing subsidy programme aimed at customers who: Are first-time home buyers Earn a monthly income of between R3 501 and R In order to qualify for FLISP you must be approved for home loan finance. All FLISP applications are processed and approved by government and you may qualify for a subsidy amount of between R (income R3 501) and R (income R15 000). Home Loans Page 6

7 Loyalty Home Loan This offering is specifically aimed at existing Absa Home Loan customers selling their current home and buying another, which they intend refinancing with Absa. This is generally called a linked transaction. 25% reduction on NCA initiation fees 0,50% cash back on the value of the new home loan approved (capped at a maximum of R6 000) paid into your bank account. Buy-to-Let Home Loan With Absa as your property investment partner, you ll enjoy access to a Buy-to-Let Home Loan that ll address your specific needs, together with competitive interest rate options and flexible repayment terms. A Buy-to-Let Home Loan can be registered in the name of individuals, including non-south African residents, and legal entities such as companies and trusts. Flexible repayment terms of up to 30 years Free membership to One Call Home Solution. Building loan The building loan is a financing option that allows you to design and build your unique dream home. You may only use a builder who s registered with the National Home Builders Registration Council (NHBRC). As the building progresses, payments are made to the developer/builder/nominated payee by means of progress payments. The final payment is made only once the work is completed in full and an Occupation Certificate is issued by the local municipality. You only start paying back the loan nine months after your bond has been registered or the building has been completed, whichever comes first Interim interest is charged on the loan balance, starting from the date of your first home loan payment and calculated up to the date of your final progress payment. Home Loans Page 7

8 Pension Powered Home Loan This loan lets you finance the cost of a house, land or renovations using the the money saved in your pension or provident fund as security (collateral). So, even though your fund guarantees the amount you borrow, your pension benefit isn t reduced by the amount of the loan, provided that you ve repaid the loan in full before you retire or leave the fund. International Mortgages If you re a non-south African citizen looking to invest in South African property, our International Mortgages business unit can assist you. Our products and services include legislative and foreign exchange information, as well as guidance relating to market conditions and property in the South African market. Please bear in mind that you ll need to put down a 50% deposit in accordance with South African law. Absa HelpUSell We understand that there may come a time when you re unable to continue paying your monthly loan repayments. If you ever find yourself in this situation, please talk to us so that we can help you avoid legal action or even the loss of your home. Absa HelpUSell is a service that helps you sell your property at a market-related price, so that you can pay what is owing on your home loan. We work with property experts who will valuate your property realistically and help you sell it for the best possible price as quickly as possible. Absa HelpUSell is preferable to having your property sold at Sheriff s Auction, as you ll probably get a lower price under those circumstances. We ll write off up to 50% of your shortfall after the house is sold Qualifying buyers could get up to 100% finance and a 50% discount on bond costs, making it easier to sell You get the best possible price to cover the remainder of your bond. Home Loans Page 8

9 Options to suit your specific needs Home Loans Page 9

10 Further Advance A Further Advance is the term used when you re applying for a loan or increasing the current loan amount granted on your home loan. In this instance there must be sufficient value in the property to allow for the registration of a bond to cover the increased loan amount. Further Advance funds can be used for any purpose, from home improvements and education to dream holidays. This is convenient finance, especially when structured on MultiPlan to suit your individual needs. When doing a Further Advance, there ll be attorney costs and bond registration costs to register the bond as security to cover the increased loan amount. ReAdvance A ReAdvance is the term used when you re applying for an advance on your existing loan, taking the outstanding balance back up to the original loan amount granted. Because you re not increasing the original loan amount granted, you won t be required to register any further bonds over the property. ReAdvance funds can be used for any purpose, from home improvements and education to dream holidays. This is convenient finance, especially when structured on MultiPlan to suit your individual needs. MultiPlan With MultiPlan you can structure your home loan into multiple loans to suit your individual needs, each with its own designation, for example, home improvements, second-hand car, furniture or education expenses. This option allows you to save interest by financing more expensive debt at the preferential home loan rate over a shorter term. FlexiReserve FlexiReserve allows you to access all payments that were made over and above the minimum payment due either monthly or lump sum payments. These advance monies can be withdrawn either by a transfer via internet banking (for those customers with an Absa transactional account) or by drawing a bank cheque at a branch. No third-party payments will be allowed from the home loan account. Withdrawals will be limited to a minimum amount of R1 000 per transaction. Home Loans Page 10

11 Interest rate options You have two rate options to choose from: a variable rate and a fixed rate. Note: Only a variable rate will be available on a new loan until such time that the home loan is registered and paid out in full. Variable rate A variable interest rate is a fluctuating rate linked to the prime lending rate, as set by Absa from time to time. By default, your Absa Home Loan will have a variable interest rate. Choosing a variable interest rate is a good option if you think interest rates will reduce over the short to medium term. Fixed rate When selecting a fixed rate option, the rate on your account will remain fixed at the chosen rate for the selected period. When you ve selected a fixed rate option, you may not opt out before the duration of the selected rate. A fixed rate option is generally selected when there s an upward trend in variable rates. Repayment period The repayment period is one of the most important decisions you ll need to make about your home loan. We offer a maximum repayment term of 30 years. Remember, the quicker you pay off your home loan, the less interest you ll pay. However, a shorter repayment term will mean higher monthly repayments. Home Loans Page 11

12 Insurance Your home is likely to be your biggest investment, which is why it s important to make sure your house and its contents are fully covered. We also suggest that you take out a policy that ll cover the amount outstanding on the bond in the event that you die or are retrenched, so that your family doesn t carry the burden of that debt. Homeowner s Comprehensive Insurance Homeowner s Comprehensive Insurance (HOC) provides cover against loss or damage to the structure of your home. It covers events such as: Theft and attempted theft Malicious damage Fire or explosion Acts of nature such as wind, lightning, storm, hail, flood and earthquake Burst, leaking or overflowing geysers and water pipes Failure of geyser components due to wear and tear Damage caused by animals and vermin Impact by vehicles, falling trees and aircraft Subsidence and landslip. Your policy includes, among others, the following benefits Alternative accommodation after an Loss of rent/rental value insured event has occurred Damage to gardens. Hiring of guards to protect your property after an insured event has occurred If you have a sectional title unit, your home will probably be covered by the Body Corporate. The amount insured increases annually to minimise the risk of your being underinsured in the future Geyser maintenance cover Accidental death cover for the bondholder The policy can be linked to your bond and the premiums included in the bond repayment. Contact Absa Insurance Company on to speak to an HOC underwriting consultant if you have any further questions. Home Loans Page 12

13 Absa idirect: Protection for your moveable assets Our short-term insurance company, Absa idirect, offers affordable protection for your vehicles, the contents of your home, as well as the items you take out of your home with you. Additional benefits Car hire Flat-rate excess Motoring assistance, including towing and locksmiths Home disaster assistance, including glaziers, locksmiths, plumbers and electricians A loyalty programme, which offers discounts on many useful products and services. Note: If your property is a unit in a sectional title complex, the Body Corporate isn t responsible for arranging this type of insurance, so it s your responsibility to do so. Absa Life insurance Absa Life will ensure that your home loan is protected in the event of death or retrenchment. You can also add disability cover if you choose. Our life cover will be debited to your home loan account monthly and will stay active while your loan exists and you don t even have to have a medical examination. We also offer a fully underwritten and comprehensive option. Home Loans Page 13

14 Value-added solutions Value Bundles A Gold or Platinum Value Bundle is the perfect transactional solution for you if you require a full banking relationship with Absa. You ll benefit from reduced banking charges for already having a home loan with us. estatements You can choose to get your home loan statements by instead of through the post. estatements are easy to view, print or save You no longer have to deal with paperwork Your estatements are password-protected, encrypted and digitally signed Together, we ll be doing our bit to save our natural resources. Absa Homeowner App The Absa Homeowner App is an innovative tool that s free and available for anyone to use. The App will guide you to the home of your dreams by letting you search for properties for rent or sale in thousands of listings from the biggest property listing provider in South Africa. Save and rate the properties you like Contact estate agents directly to arrange a viewing Use the unique repayment, transfer fees and costs calculator Contact Absa directly to apply or use the branch locator function to lead you to a friendly home loan adviser. Bond calculator If you want to find out the registration charges, transfer costs and attorney fees involved in taking out a new home loan, simply use our bond calculator at absa.co.za to calculate the actual costs. Will As a valued new home loan customer of Absa, you qualify for a free will. As soon as you accept your home loan quote, Absa Trust will contact you to draft your will. This offer will be available until 31 December Home Loans Page 14

15 What to bring when you apply You ll need: Fully completed application form Valid, bar-coded South African Identity Document Latest salary advice (or income statement if self-employed) Offer to purchase (if purchasing a property) Three months transactional account statements (if you don t bank with Absa). When applying for a building loan In addition to the above, you ll need to bring the following supporting documents: Copy of provisional/approved plans Copy of detailed tender/quotations Minimum specifications and schedule of finishes Waiver of builder s lien. Contact us Home Loans Contact Centre home@absa.co.za absa.co.za Private Banking privatebanking@absa.co.za International Mortgages +27 (0) internationalmortgages@absa.co.za Absa HelpUSell Homeowner s Comprehensive Insurance Absa idirect (short-term insurance) Absa Life Insurance Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7