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ABSA Home Loan Deposit

The ABSA home loan deposit rates are different for different people. This is because the bank offers discounted rate if you are an existing home loan client. For example, the bank requires a 15% deposit on home loans if you are an existing client whereas, the bank charges 30% deposit if you are not the client of ABSA bank. In case you are interested in investing in property and want to buy a vacant land the bank would charge 40 per cent deposit. The average deposit which the ABSA bank charges on home loans is 22.6%. In the year 2008, the bank used to charge only 14.4% as deposit rate. This has been increased by almost 6% in the current year.

The property market in the recent past has experienced a decline because of the global financial crisis affecting the financial market. This is the main reason for the bank to have kept such tight deposit requirements. The deposit rates depend on the value of the property as well as the financial market. In case a customer is unable to meet the deposit requirements, the ABSA bank accepts retirement savings as a collateral deposit.

Benefits of ABSA Home Loan Deposit

  1. A deposit covers the outstanding home loan amount
  2. The bank provides almost 100% loan of the price of the property; this means that you need not save extra as deposits
  3. The bank grants maximum loan tenure of 30 years
  4. ABSA does not charge any extra payments on increasing or decreasing the loan term at any point the customer wishes to do so
  5. It also offers the customers to choose between a fixed rate of interest or a variable interest rate
  6. The rates are fixed for a period of ten years, if the customer wishes to switch over from the fixed rate to a variable interest rate, it is made possible
  7. Electronic banking transactions are introduced with the help of which Internet banking or online banking can be done. This saves time and energy

In order to qualify for a ABSA home loan, the borrower's monthly income must not be less than R7,500 per month and should also meet all the credit requirements set by the ABSA bank. Customers please make sure that the home loan qualifies only for purchasing any residential property and does not include other charges applicable on transfer or registration. The minimum amount of housing loan customers can apply for is R 120,000. The customer will also have to purchase life insurance on the home loans in order to qualify for the same.

For more details on ABSA home loan deposit you can visit their official website http://www.absa.co.za/


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