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Investec home loan review 2022

Investec is a private bank that caters to middle and upper-class South Africans. The bank provides structured finance to its clients and helps them with their own properties at a low rate of interest. With its home loan, Investec is able to make owning a home at a young age possible, especially for new graduates.

Holders of an Investec Private Bank Account get some prioritization on the Investec home loan. Charges such as the monthly administration fees are not charged to private account holders. Furthermore, private account holders get preferential interest rates and other banking perks. 

There are insurance covers to choose from as one gets accepted for the Investec home loan. Investec Mortgage Protection Cover provides cover should the loan account holder die. Through Aon South Africa, one can get a wide range of discounted insurance products. 

A home loan from Investec can be a great start to owning a first or a second home. To get started with a home loan from Investec, one can make an application on the Investec website. However, before making a home loan application, first familiarise yourself with the product and know what you are going to get. 

Investec Home Loan Summary 

Investec offers home loans to both Investec and non-Investec clients, with funding up to 100% of the home’s value. As part of the credit, home buyers can include transfer fees, conveyancing fees, deeds office registration fees, and up to R5,000.00 in miscellaneous charges. The loan has a competitive interest rate that starts at 7.75 % per year.

If you choose to finance your property with an Investec home loan, you will save money on attorney fees. With the Investec home loan, first-time buyers are given priority and have up to 30 years to repay their loan. The Investec home loan has a normal payback duration of 20 years.

Investec Private account holders are given special consideration. If private account holders make their repayments via debit order from their Investec account, their monthly service fee is waived. There are numerous repayment options available, and there are no penalties for paying early.

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.

Investec home loan review 2022

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at [email protected]

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