Affordability has been singled out as having become a key factor in the South African housing market according to Standard Bank Home loans. In its quarterly review recently, the bank said the focus of demand for supply of housing is set to be on smaller-sized and higher density housing because affordability is set to remain a key factor into the future.
Standard Bank Home Loans
For many of us, a home is the biggest and most significant investment of our lives. It’s more than a roof over our heads, it’s where we raise our families and create precious memories.
Features of buying your first home with a STD Bank home loan:
- You can apply on your own or with a partner as long you and your partner have not owned a property.
- You may qualify for a loan of up to 104% of the value of the property, provided the loan amount does not exceed R 1 million and depending on your affordability and risk profile. The “extra” 4% may only be used to pay the transfer and bond registration costs.
- You can repay your loan over 20 years.
- Competitive interest rates.
- Loans are available to private individuals only – you cannot register a loan in the name of a trust or other legal entity.
- Credit life insurance may be needed – this covers payment of your home loan in the event of death, dread disease, permanent disability or retrenchment.
FNB Home Loans
The Traditional home loan is a loan to assist the customer with finance when purchasing an existing residential property. The traditional home loan may be combined with a range of additional facilities and options to personalise your home loan.
A First Time Home Buyer has never owned a property before and is approaching FNB for finance.
You will need to meet the following criteria when applying for a home loan for the very first time:
- The qualifying criteria on a New Home Loan must be met.
- You must be purchasing a property for the first time.
What documents do I need?
- A copy of an Offer to Purchase (if applicable)
- Proof of income
- If self-employed provide the latest financial statements
- Suitable proof of residence
- Copy of South African identity document
- Copy of your marriage certificate (if applicable)
- Completed application form