Investec Home Loan Review 2023

Investec is a private bank that serves South Africans in the middle and upper classes. The bank offers structured finance […]

Investec home loan

Investec is a private bank that serves South Africans in the middle and upper classes. The bank offers structured finance to its clients and assists them with their own properties at a low interest rate. Investec’s home loan allows young people, particularly recent graduates, to own a home at a young age.

Holders of an Investec Private Bank Account are given preference on the Investec home loan. Private account holders are not subject to charges such as monthly administration fees. In addition, private account holders receive preferential interest rates and other banking benefits.

When applying for an Investec home loan, there are insurance options to consider. Investec Mortgage Protection Cover protects the loan account holder in the event of death. Aon South Africa offers a wide range of discounted insurance products.

A home loan from Investec can be a great way to get started on your first or second home. To get started with an Investec home loan, fill out an application on the Investec website. However, before applying for a home loan, familiarize yourself with the product and understand what you will receive.

Investec Home Loan Summary 

Investec provides home loans to both Investec and non-Investec customers, with funding of up to 100% of the home’s value available.

Home buyers may include transfer fees, conveyancing fees, deeds office registration fees, and up to R5,000.00 in miscellaneous charges as part of the credit. The loan has a low annual interest rate that begins at 7.75%.

First-time buyers are given priority with the Investec home loan and have up to 30 years to repay their loan. The typical payback period for an Investec home loan is 20 years.

Investec Private account holders are given preferential treatment. The monthly service fee is waived for private account holders who make their repayments via debit order from their Investec account. 

There are numerous repayment options available, and there are no penalties for paying ahead of schedule. After a given period of time, Investec account holders receive a portion of their capital on their home loan account.

For the first 59 months and thereafter, loan account holders get access to the capital portion of their loan repayment once a year. Account-holders can apply for financing for their second or third property from then on.

Investec provides mortgage protection through the Investec Mortgage Protector. Account-holders can secure their investment by protecting the amount of a loan taken to cover the purchase of a home with the mortgage protector. Mortgage protection rates decrease as the amount owed decreases.

How the Investec Home Loan works

For Investec clients, the Investec Home Loan can be applied for online through the Investec website or on the Investec app. Anyone who is gainfully employed is eligible to qualify for an Investec home loan. If all the documents and information are given, the application can take up to 72 hours to be approved.

A property with an offer to purchase will be required for an application. Such property could be located in South Africa for the loan to be considered. After receiving a purchase offer, a loan can be authorized or denied. This will be determined by the valuation of the property performed by Investec. The valuation is for the property chosen and is subject to a fee that the bank will require.

Following approval, Investec will disburse the money as specified. These funds can all be used to cover attorney’s fees, Deeds Office Registry Fees, and other fees associated with property transactions. If a loan includes fees, the total amount borrowed will be greater than the purchase price of the home being purchased.

The loan amount will be accompanied by an interest rate that will apply for the length of the loan. The loan’s interest rate will vary depending on the customer’s credit history and income level. The sum borrowed must be returned with interest over a period of 20 to 30 years.

Early settlements are permitted to encourage loan account holders to save money on interest. Since there are no penalties for early settlement, a lump sum payment combined with monthly repayments can be made to finish making repayments to the loan account.

Advantages of the Investec Home Loan 

  • The interest rate is reasonable, starting at just 7.75% each year.
  • Purchasers of their first home have up to 30 years to repay their mortgage.
  • The Investec home loan can be secured using the Investec Mortgage Protection Cover to cover the amount of credit borrowed.
  • Aon offers optional building insurance to protect the home against natural disasters and human negligence.
  • At some point, a portion of the loan’s principal is released and used to fund another property.
  • Investec offers property loans that can cover up to 100% of the purchase price.
  • The application process is simple and may be completed entirely online through the Investec website.
  • The Investec home loan can be used to cover the cost of purchasing a home.
  • There are no penalties for paying off the loan early.
  • There are a variety of repayment alternatives available, including lump-sum payments.
  • Priority rates are given to private account holders.

Disadvantages of the Investec Home Loan 

  • Interest rates can be high for those with a low credit score and a high deposit amount can be required. 
  • Insurance covers can increase the monthly premiums, meaning one can be over-indebted. 

Requirements of the Investec home loan works 

  • Have a South African ID book or Smart card. 
  • Be over the age of 18 years at the time of application. 
  • Have proof of income ( latest payslip and last 3 months’ bank statement). 
  • Proof of residence that is not older than 3 months at the time of application. 

Conclusion 

One can realize his or her ambition of purchasing a property with an Investec home loan. The product aims to accelerate home ownership for new homeowners, particularly recent graduates, by providing low monthly payments with a longer repayment period.