In view of expected higher interest rates in 2006, the affordability of housing will again be in the spotlight. To remain one of the four biggest SA home loan providers ABSA is constantly evaluating its home loan products and adapting them to better suit the current environment.
It’s a fact that increasing the affordability of a home loan can be done by extending the mortgage term from 20 years to 30 years.
ABSA are now offering home loan over 30 years which should reduce your monthly bond repayments by 10%.
Alternatively – you opt to purchase a bigger home. With the extended term of 30 years, the homeowner is able to get more house for their money because it effectively increases the capital affordability by 10%.
By paying less on your monthly repayments, you can now afford a property with a 10% higher capital value. And if you already have a 20 year home loan you can extend it for FREE.