Posted on Jan 5, 2021 by Staff Writer
Absa provides a one-stop-shop for home loan buyers. As a bank, Absa offers property finance solutions for businesses and individuals. All it takes to get started is to submit an application for a home loan.
Absa’s home loan solutions include :
- Loans for first time home buyers.
- Commercial property finance.
- Loans for next homes.
- Switching an existing home loan to Absa Bank.
- Building a home.
- Buying to let.
Absa Bank caters for different home loans as listed above required by both individuals and businesses. The bank clearly shows a superior understanding of the property market, as it offers buying to let home loans which are rarely offered by most home loan providers.
Absa home loans have flexible interest rates. The bank allows home loan acquirers, to choose between a variable interest rate or a fixed interest rate fo a home loan.
Absa also offers relaxed payment terms. The bank allows you to choose a payment method that suits you. You can choose to make your payments in monthly instalments, in a lump-sum, or at different intervals.
When taking a home loan from Absa, it is important to consider the discounts and benefits offered.
Young professionals, private clients, and general home buyers have different discounts and benefits. To take advantage of these benefits you will need to know exactly what the bank is offering you.
Besides the distinctive benefits of an Absa home loan, Absa also offers tools and expert services that you can use at no cost for your own benefit. You can use their home loan calculator to make projections and get free advice from Absa advisors to guide you through the process of acquiring a home loan.
Costs that you need to know before buying a home
When buying a home there are costs that you will incur. These costs are important as you might be the one responsible for paying them off, depending on the kind of home loan you get from Absa.
In many instances, a bank will only pay 100% value of a home loan to finance a purchase but does not cover other fees such as attorney fee, Initiation fee, etc.
Before you become a homeowner, you must know all these costs. Absa has a list of costs they recommend home buyers to know before taking out a home loan.
|Cost Name||Description||Estimated Amount|
|Purchase price deposit||This payment is applicable to building loans and is for securing land.||Differs according to property value.|
|Builder or constructor fee||This cost is for building costs, materials, sundries, etc.||Vary according to the quotation from contractors.|
|Architect fee||This fee is for the design, drawing, and submission of plans to the local council for approval.||Fees vary.|
|Registration fee||The fee is paid to the attorneys.||Differs.|
|Transferrimg costs||This is a fee that is paid to the attorney for legal representation and conveyancing.||Vary depending on the purchase price of a property.|
|Deeds office registry fee||It is a fixed fee for the local registration of the loan||Between R70 and R3000|
|Initiation fee||This is a one-time fee to initiate the home loan and to open a home loan account.||R6,037.50|
|Transfer duty||Transfer duty is only applicable to properties that are bought or valued for more than R1,000,000.00.||Uses a progressive model to calculate amount. See transfer duty costs here.|
|Deposit||Deposits are optional. Absa can pay up to 105% of the value of the property.||Can be any percent of the value of the property.|
|Insurance costs||Includes homeowners and/or life insurance||Will depend on premium quotation.|
|Municipal rates and fees||This amount is the sum that you will need to pay your municipality on a monthly basis.||Varies.|
|Monthly home loan repayments||This is the monthly loan repayment amount that you and Absa agree on.||Depends on the purchase price, payment period and interest rate.|
|Administration costs||These costs will be charged to maintain your home loan account||Varies|
Individual benefits for choosing Absa Home loan
Absa Home loans come with discounts and benefits for different clients. Private banking clients, low-income earners, and young professional clients are given benefits when buying a home.
We will discuss all individual client benefits from the Absa Home loan and also examine each category.
Young professionals home loan benefits and discounts
Young professionals are employed graduates under the age of 35. These young professionals receive generous benefits and discounts from Absa home loans.
Young professionals receive such discounts as they are considered to be low-risk investments to the bank. This means that the likelihood of them being able to pay off their home loan is very high.
What young professionals get for choosing Absa as their home loan provider
- Absa offers a personalised home insurance and home contents insurance at a premium.
- Absa rewards program members get 10% cashback on MyTelnet home connectivity products and services and 10% cashback on Fidelity ADT’s monthly subscription.
Banking with Absa will give you better rewards if you are to take their home loan as a young professional. You can earn cashback by joining the Absa rewards program.
Benefits of choosing Absa Home loan as a young professional
- Flexible repayment terms of up to 20 years.
- A choice between variable and fixed interest rate.
- Access to financial planning consultations. You will get a need analysis on savings and investments, insurance and risk protection, wills and trusts, and retirement planning.
- You get up to a 105% bond for a property valued at R1,500,000.00 or less.
- The attorney will come to you to sign your documents.
- Receive a 30% discount on Absa panel attorney bond registration costs.
Private Bank home loan discounts and benefits
As a private banking client, it means you are already getting special treatment from Absa. Fortunately, the treatment will continue with an Absa home loan.
You will get your own dedicated private banker. The private banker will assist you every time you face any challenges with your home loan. Your private banker will be available for you 24/7 whenever you need help.
What you get as private client from an Absa Home loan
- Advice and support from a dedicated private banker.
- Flexibility and choice to structure your loan repayments to suit your specific needs.
- FlexiReserve option that will allow you to deposit and withdraw funds.
- Access to Absa Homeowner’s App.
- You will be able to track your application online, from submission to registration.
- Comes with free eStatements.
- Absa rewards.
MyHome Home loan discounts and benefits
The MyHome home loan is a home loan from Absa that is preserved for those who earn R25,400.00 or less per month. Those who are interested in this product can apply as individuals or jointly.
MyHome Home loan is Absa’s most basic home loan option and comes with a number of benefits. MyHome Home loan comes with many benefits as Absa understands the difficulties low-income earners face.
For low-income earners saving is a key aspect of their life not because they want but because they have to. Thus, the MyHome Home loan serves as a suitable option for low-income earners.
Why MyHome home loan is a good home loan option
- You can get a home loan of up to 100% of the value of the property.
- Comes with a 50% discount on bond registration fees. This is the highest discount on bond registration offered to clients
- Access to insurance and retirement plans.
- Under MyHome home loan you may qualify for a government housing subsidy.
- Comes with a free training course on homeownership.
- MyHome home loan comes with a zero Initiation fee. You will save R6,037.50 in the process.
- If you are an Absa reward program member, you get 10% cashback on MyTelnet home connectivity and 10% cashback on fidelity ADT monthly subscriptions.
Available home loan options from Absa
Absa has different home loan options for home loan buyers. These home loan options are there to meet the home loan needs of different individuals.
Absa has five home loan offers available for individuals. These include offers for first-time home buyers, next home buyers, switching a home loan to Absa, building loans, and buying property to let.
1. For first time home buyers
As a first-time homebuyer, you may not know what to do to get a home loan suitable for you. Absa has solutions for different home buyers, be private clients, low-income earners, or young professionals.
You will be able to buy your first home with ease. Even if you are a high-income earner or low-income earner, Absa will help you buy a home that is compatible with your finances.
For low-income earners that earn between R3,501.00 to R25,400.00, Absa will help you get access to a government subsidy. This subsidy is there to help low-income earners to be able to purchase houses.
You can get a government housing subsidy between R27,960.00 to R121,626.00. The amount you will qualify for will be paid as a once-off lump sum towards your home.
Those earning more than R25,400.00 will have even better options when buying their first property. Young professionals and private clients are assisted with their insurance needs and get other advisory benefits.
2. Home loan to buy another home
Absa helps individuals to achieve their goals of getting finance to purchase their 2nd, 3rd, or 4th home. It is not every day that you buy another house and by buying another house you will need a better home loan solution.
Absa funds up to 100% of the value of the house that you want to buy. This finance also comes with a choice of interest rates. You can choose between a variable or fixed interest rate on your home loan.
3. Switching an existing home loan to Absa
By choosing to switch your existing home loan to Absa you will get:
- Optional extension to your loan payment term. This is done to suit your pocket at the time.
- You get a reduction in costs.
- You could access more of your home’s equity when you need it at a potentially lower interest rate.
- Access to financial consultation as well as convenient insurance and retirement plans.
Switching your home loan is easy and simple. With the help of Absa, you can be able to open an account fast.
4. Building loan
Building a home requires a lot of work and access to sufficient funds to accomplish. Absa helps individuals to realise their dreams of building their dream home.
Absa can help you find land and help you calculate how much you need to spend on your dream house. When finding a contractor or builder he or she must be registered with the NHBRC.
5. Buying property to let
Absa gives loans to those individuals with a mind to invest in property rather than to use it as accommodation. The amount that you can qualify for will depend on an assessment from Absa.
This is what Absa will do for you if you choose it as your home loan provider:
- Factor in potential future rental income if you have two or more properties.
- Give you access to TNP tenant management solutions to assist you in managing and protecting your property.
- Offer financial planning experts to ensure you get advice that property investor needs.
- Give you access to Absa Law For You legal services on call whenever you need them.
Absa provides home loan solutions that resonate with different types of property buyers and investors. The company offers property ownership solutions and investment solutions that benefit buyers.
Choosing Absa as your home loan provider comes with benefits that go a long way. No matter the type of client you are, you will always save when you choose Absa as your home loan provider. This makes Absa a good choice to get a home loan.
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