Nedbank Home Loan Interest Rates

Nedbank home loan interest rates are offered according to the budget and requirements of the customer. The bank offers different types of home loans to its customers such as the Building Loan, Buy To Let Loan, Nedbank Home Vision, Ordinary Home Loan.

The building loan is used to finance the construction of a house or make any improvements on the same.

• The minimum loan amount sanctioned is R70,000 up to a
  maximum of 360 months of interest rates.
• The loan applicant must have a minimum income of R2,500.
• Buy to let as the name suggests is used by those home owners who want to buy a house initially but have plans of renting it out to a third person.
• The minimum loan amount approved is R70,000. The loan applicant must have a very good credit history.
• Nedbank home vision sanctions more than the required amount of housing loan. The extra amount can be used for furnishing the house.
• The ordinary home loans can be tailored to suit the individual needs. People applying for an ordinary home loan must have a South African citizenship, a minimum gross monthly income of R2,500 and a good credit record.
• The Loan to property value is up to 100 % for Ned Bank clients.
• The applicant can choose from fixed or variable interest rate.
• One can start repayment of loan from fourth month of taking loan
• Maximum repayment to income is 30%.
• Repayment term of up to 25 years.

Nedbank Home Loan Rates

The prime rate of Nedbank housing loans are charged at 9% per annum as of January, 2011. This rate can be changed anytime without giving prior notice to the customer. It is always better to contact the Nedbank home loan department personally before availing a housing loan. The bank officials will be the right persons to guide you on the existing home loan interest rates.

However, the Nedbank offers two types of interest rates. One is the Fixed rate of interest and the second is the Variable interest rate. The customer can choose between any of the rates and tailor the home loan according to his/her budget and needs. The bank also gives an option of switching over from a variable rate of interest to a fixed interest rate. However, if the customer will be able to do so only after six months of home finance. Variable interest rate keeps fluctuating with the financial market; whereas the fixed rate remains the same till 10 years of the loan term. With the variable rate the amount of repayment also changes.

Other Home Loan Products by Nedbank

1. Alphabond-for first time home buyers and bank gives loan up to 108% of the total bond amount.

Qualifying Criteria

• The loan taker must be citizen of South Africa
• Single or joint gross monthly income of R2 500
• Clear credit record
• The loan seeker must have stable employment in same career stream for not less than 2 years
• First time buyer instalments to be paid by monthly debit order.

• Single or joint gross monthly income of R30 000

3. Home Income Plans-Senior Citizen

• Minimum loan amount of R200,000
• The maximum loan to value of property can be as high as 45%
• Lump sum payment
• Professional and realistic valuations done on the property.

• Individual between age of 65 and 85 (exceptions may apply)
• Citizenship of South Africa
• No income requirement
• A Nedbank account is required to receive monthly payments
• The property should meet future growth potential