ABSA Home Loans ask buyers for even bigger deposits now

 
Home Loan Lending Policy: ABSA, Nedbank tighten mortgage lending

Nedbank and ABSA Home Loans have further tightened their mortgage lending criteria, effective 1 Dec 2008.

ABSA – SA’s largest home loan provider – has lowered their maximum home loan to 85% of the property value / purchase price. While, Nedbank homeloans are only offering up to 90% bonds.

Although interest rates are expected to drop in the near future, ABSA has stated that they will not ease their loan requirements until property prices begin to increase again.

Luthando Vutula, Managing Executive of ABSA Home Loans has also come out saying that the days of 110% home loans are gone.

110% home loans (no deposit homeloans) were usually issued to first time buyers, to help pay the extra attorney and bond registration costs.

Currently, only 90% home loans are available to South Africans. And in the case vacant land purchases only 75% of the purchase price will be financed by the banks.

Related Topics:
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No Deposit Home Loans

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3 Comments For This Post

  1. petro Says:

    It will be a great relief if the interest rate comes down. This will still not help the first time buyers if the banks keep on tightening the mortgage lending criteria.

  2. Colin Brazendale Says:

    As interest rates come down and affordability increases so would prices. It will not happen overnight, but 2009 looks like a much better year for property.

  3. FRANCISCA ABADE Says:

    I hate nedbank’s interest rates, the other day I requested a settlement amout-I need to pay- off my balance on the loan, but a lady consultant told me nedbank has no settlement amount because their interest rate are per day. What on earth is that suppose to mean? the ten years I paid nedbank is far too much. I need to pay my bond off. Please tell me positive news.

    DEsperate Client

    Francisca Abade/Manaka

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