As of 23rd Oct 2008, Standard Bank Home Loans division will only be granting Mortgage Loans to a maximum of 95% of the property value.

Previously, new home buyers were able to secure a full mortgage bond of up to 108% (to help cover costs) from all the big banks.


The ratio between the mortgage loan amount and the value of the property usually expressed as a percentage.

But Banks have responded to the slowdown in the local residential property market and rise in interest rates, by discontinuing all Costs Inclusive (108%) mortgage loans. Setting the maximum LTV to 100%.

A few months later and the accepted Loan-to-Value ratios have dropped even further.
Standard Bank , ABSA and Nedbank offer a maximum Bond of up to 95% of the property value , while FNB are the only mortgage lender currently willing to offer up to 100%.


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Bond Originator South Africa

Co Founder of Mortgage Innovations

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