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.
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.
Do you a question / Need more assistance?
For more assistance with regards to applying for Home Loan finance contact one of our consultants.
Ph: 0861 111 563
or Complete This Request Form Online