The Nedbank Home Loan

Nedbank is one of the largest banks in South Africa, with headquarters in Johannesburg and one of the newest banks to be incorporated. Nedbank offers a wide range of personal and commercial financial services in South Africa and other parts of the continent. Nedbank has convenient locations throughout South Africa.

An Overview:

One of the services offered by Nedbank is home loans. A home loan allows the applicant to purchase a primary or secondary residence, vacation home, investment home or make home improvements. A Nedbank home loan allows the applicant to negotiate a repayment plan up to 30 years, select a variable or fixed rate, and qualify for a 100% home loan for the first time buyers, access options to suit your personal financial needs. Your monthly payment will include capital and interest, homeowners insurance premium, life insurance premium (if applicable) and monthly administrative costs. Nedbank allows its home loan customers to pay off the loan sooner than the agreement stipulates by increasing your monthly payment by a fixed amount, increasing your monthly payment by an annual percentage or selecting the period which you want to pay off your mortgage.

Who Will Not Qualify for a Home Loan:

The applicant will not qualify for a Nedbank home loan if they have bad credit, manage their bank accounts poorly, have bond payments, utility or tax payments behind schedule or have had property, vehicles or furniture repossessed due to non payment. If you are looking for a home loan but fall into one the previously noted categories, correct your financial and credit status before submitting an application.

Application Information:

The first thing to do is to fill out a qualifying application. The data provided, credit check, employment history, financial status, debt and debt repayment ability and payment history will be used in the determination. The documents the applicant will need to provide are: the latest salary receipt or a certified financial statement if self employed, identification, marriage certificate if applying as husband and wife, bank account statements for the past six months, statement of bond account (if applicable) or a title deed if no bond is available.

The Financial Implications:

The amount of money borrowed is based on your earnings. Typically the monthly payment cannot exceed 30% of your gross income. That will be determined during the approval process. Allow between 8% and 10% of the purchase price for fees, which may include but not limited to, such as the down payment, transfer duties, conveyance fees, bank charges, homeowners insurance, utility costs, bond fees, taxes and moving costs.

Before your loan is approved, most banks, including Nedbank will require the applicant to put a home owner’s policy in place unless it is already part of the deal. The bank may recommend their own insurance agent for the policy but it is recommended that the applicant shop around for the best rate possible. The lender may also require the applicant take out a life insurance policy. This policy will protect the applicant’s family in case of untimely death and pay the remainder of the home loan in full.

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