Nedbank Home Loans

Nedbank home loansoffers a wide range of flexible housing solutions which helps the customers buy a house they have always dreamt of. All the credit goes definitely to competitive interest rates and the option of tailoring the

home loan just to suit the budget of the customers. Whether you are a first time buyer or are interested in investing in to property or want to buy a second house, Nedbank's home loans are available for all the purposes. Nedbank allows you to qualify for 108% home loan if you are a first time buyer. The bank also gives the customers a chance to use bonds for making debt consolidations. In case you are interested in applying for a debt consolidation program you will have to contact a home loan consultant directly.

Nedbank mortgage

The bank has four types of loans catering to the various credit requirements. The options are mentioned below:

• Building Loan – The loan is meant for those who want to build new residential property or want to upgrade the existing one through addition or renovation. Anyone may avail the loan provided the minimum criteria are fulfilled. Some of the features are fixed or variable rate of interest; Accelerated payment option that would help the borrower to repay the loan quicker; payment of the loan for the amount of work completed; repayment term till 30 years; and monitoring the progress of the project in by the bank to ensure that it is completed within the stipulated time. The client applying for the loan ensure the following:
  • Have a credit record with no negative points
  • The minimum income must be R2500 per month
  • The construction agency or the builder must be approved by NHBRC
  • National Credit Act would be recommended for assessing the affordability of the client
  • The approval of the loan would be subjected to the valuation of the property and the credit qualifying criteria of Nedbank
  
  
• Buy to Let – Buy to let is one of the popular Nedbank home loans. It is for those who want to purchase property in order to let it for rent. One can not use the loan to purchase a property for own residential purpose. Few of the features of the loan are loan protection assurance mandatory for any borrowing of R450000 and below; term of repayment till 30 years; variable or fixed rate of interest; and accelerated payment option. In order to apply for the loan one must fulfill the below mentioned criteria:
  • The property value must be a minimum of R150000
  • Loan approval subjected to the valuation of the property and the criteria for credit qualification
  • The minimum monthly earning must be R30000 with a positive credit record
  • Affordability of the client would be assessed as per the National Credit Act
  
  
• Home Vision – The option enables one to enjoy the surplus fund over the amount of loan. The individual is given the option to register a bond, which is higher than the loan amount. This creates an additional amount that may be used by the individual in future for various purposes like structural improvement of the home; tuition fees; renovation of the home; and many other things. The surplus amount will be available when the affordability of the client and the property value increases. One needs to apply for the additional fund, which would be granted on meeting the requirements. Some of the features of the loan are the repayment is not based on the registered amount but on the funds paid; in respect to the affordability of the valuation amount one may apply for additional loan; extra cost for registering additional bond is waived; and the surplus funds may be used for any purpose. The criteria to be fulfilled are:
  • The property must have a minimum valuation of R100000
  • The loan is subjected to the approval of the credit qualifying criteria of Nedbank and also on the valuation of the property
  • Minimum income of the applicant must be R2500 per month
  • Affordability would be subjected to the National Credit Act
  
  
• Ordinary Home Loan – The loan may be used for activities like structural improvement in the existing property; purchase of residential land; and purchase of residential property. The features of the loan include highlights like fixed or variable rate of interest; option of additional loan subjected to the affordability of the applicant; accelerated payment option; and loans of R450000 or below require Loan Protection Assurance. The eligibility criteria of the loan are:
  • The credit record must be clear and the individual applying for the loan must have a monthly income of R2500
  • Loan approval subjected to property valuation and the credit qualifying parameters
  • Property valuation must be R100000
  • Affordability would be assessed in respect to the National Credit Act

Switching of loan:

Nedbank home loans also provide the option of switching loans. Often it is found that due to certain constraints the current loan option is not suitable. In this scenario one may think of changing the type of borrowing. Nedbank provides the option of switching loans for the convenience of the client. The switching is not allowed before six month of availing the loan. The procedure for changing the loan type involves giving a notice of 90 day to the current bank in order to avoid any penalty. Once it is done, ensure that all the required documents for changing the loan option are in possession. Also ensure that the six month bond statement with the current bank is available. The fees that the applicant may be required to pay are the administration fee; valuation fee; bond registration fee; and cancellation fee.

Repossessed houses:

One may buy repossessed houses from Nedbank Owned Property. These properties generally belong to those who have failed to clear the dues within the required time and have turned defaulter. These properties are bought by the bank through public auction in order to recover the pending amount. In order to buy these properties one needs to contact the Nedbank Contact Centre and check the availability of the property. The property may be searched from the property guide. Once the availability is established the required document must be obtained. The document, Nedbank Abridged Offer to Purchase Form, must be duly filled and faxed or emailed to the given address. During the whole process the bank is going to appoint the transferring it helps the buyer to save a good amount of money. The documents that are required to be presented during the time of submitting the offer are identity document; Abridge offer to Purchase; important notes to the offer to purchase; fidelity fund certificate of a valid estate agent or agency; Addendum to the offer to Purchase. One also has to pay a non-refundable reservation fee of R1000 for a purchase price up to R250000; R5000 for a purchase price within R250001 to R750000; and R10000 for a price of R750001 and more. On receipt of the approval-in-principle letter by Nedbank the reservation fee must be deposited within the next two business days.

Nedbank Home Loan Interest Rate

Nedbank home loan interest rates are offered at 10.5%. This rate is the prime rate offered by the bank. The bank finances up to 100% of the market value of the property. The minimum amount of housing loan is R70,000 and it is provided for a period of 30 years. The bank allows its customers to pay additional amount on the housing loan every month so that the customers are able to repay the home loan at a faster rate.

Nedbank Home Loan Application

The Nedbank home loan application form should be filled up by all the home

loan applicants. This form is sent to the home loan department and the home loan officials will then contact the applicant personally. All the necessary details must be filled by the applicant. This form can also be filled up online using the Internet banking services.

Nedbank Home Loan Calculator

Nedbank home loan calculators make it very easy for the prospective home loan borrowers to calculate their estimated repayments on home finance availed. This calculator can be used on their official website. Using this calculator is very simple. All the customer has to do is enter the loan amount, rate of interest the duration till which he/she will require the housing loan. The calculator will calculate the estimated repayments and flash it on the screen.
There are a number of Nedbank home loan insurance programs offered by the bank. Through Nedbank home loan insurance, the house and the family is financially safe and secure.

The calculator will tell about

• How much you will be paying monthly for your dream home
• If one wants to shorten the time period of home loan, it can be known from NedBank calculator
• If one will pay extra, calculator will tell how much one can save
• There is lump sum calculator that tells reduction of payment period and interest charged when one will pay in lump sum
• Increase of monthly payments by a fixed annual percentage will decresse payment period and interest charge and it can be known from calculator of Ned Bank
• Also calculator tell about the maximum loan amount which you can pay according to your income,expenses,interest rate and term

Nedbank Home Loan Contact Number

Nedbank home loan contact numbers are given below:
Nedbank Contact Centre: 0860 555 111
Nedbank Head office: (0)11 294 4444
Nedbank Helpline No: 0860 444 000

For more details on Nedbank home loans, interest rates, application form, calculator you can visit the link

http://www.nedbank.co.za/website/content/products/product_current.asp?ProductID=506&SubSubcatid=2011&Subcatid=516