The quick return of 100% mortgages has surprised many property finance experts. Although the return has been quick, it has also been very cautious. Banks such as ABSA, FNB and Nedbank are all offering no deposit homeloans again. The only difference is the terms and conditions regarding these bonds.
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
After a number of interest rate hikes many homeowners are beginning to struggle to manage the home loan repayments, but here's a little tip about ABSA Home Loans' Access bond facility that may shine a light at the end of your tunnel. In 2007 SA Home Loans launched a huge advertising campaign to introduce its Interest Only Home Loan facility. The product is geared towards individuals who earn commissions, or an irregular salary, and is designed to reduce the stress of paying your monthly mortgage repayments by offering you the option to pay only the interest portion. Meanwhile, ABSA Home Loans clients may have noticed that they already have access to a similar option, which is built into their