100% No Deposit Home Loans
South African Banks are constantly changing their lending policies.
100% Home Loans have returned & are available, but the banks are understandably more cautious when approving these bonds.
Read: How to secure a 100% Bond
Mortgage SA Home Loan News:
South African Home Loan providers have responded to the current high interest rate climate and slow property market by tightening their mortgage lending criteria. FNB and ABSA home loans have lowered their Loan-to-Value limits from 108% to a maximum of 100%.
The ratio between the mortgage loan amount and the value of the property usually expressed as a percentage.
108% home loans were previously used by new home buyers to cover their initial costs, such as transfer and bond costs. Essentially, if the bank valued your new home at R1million they were usually willing to offer you a loan of R1 080 0000 – to cover costs.
Since the banks are now less willing to finance the extra costs, the need for Bond Originators has become even more vital. Their service is totally free and your originator is usually able to discount some of the attorney costs while also offering you cash back.
Below are the most recent changes to the banks credit policy:
ABSA Home Loans
- Loans up to R800k – maximum of 100% LTV.
- Loans greater than or equal to R800k but less than R2.7million – maximum of 95% LTV.
- Loans greater than R2.7million but less than R4million – maximum of 90% LTV.
- Loans of R4million or greater – maximum of 85% LTV.
FNB Home Loans
- Maximum LTV of 100% on all bonds – this also applies to the FNB One Account
Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and/ or securing attorney discounts.
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Call us on 0861 111 563