108% Mortgages for First-Time home buyers from Standard Bank
If you’ve never owned a home before and are looking to purchase a property for the first time, you’re often referred to as a First-Time Home Buyer.
First-Time Home Buyers usually have similar problems and therefore the banks have developed mortgage solutions specifically for this type of client.
One of the biggest obstacles first-time home buyers faced in previous years was that they could not afford to pay the costs involved in applying for a homeloan. Also, very often these clients could not afford to put down a deposit on their mortgage as a result 108% home loans were introduced.
Standard Banks 108% mortgage is called the JumpStart Home Loan, and it is only available to First-Time Buyers. A similar home loan called the Costs-Inclusive Home Loan is available for Second-Time Buyers.
- You need to be a first time buyer.
- The Home Loan amount must be between R100 000 and R2 Million.
- You need to earn a single or joint income of at least R6 000pm,
- and you must be 21 years or older.
STD Bank JumpStart Options:
There are 3 JumpStart Interest Rate Options available:
- three month payment holiday
1. Variable Rate Option
With a variable home loan interest rate you enjoy the flexibility and benefits of a fluctuating rate. For the JumpStart Home Loan your interest rate will always be the current Prime Rate
2. Fixed Rate Option
A fixed rate ensures that you have assurance regarding your bond repayments for up to 24 months months. The fixed rate option is available for 12, 18 and 24 months.
3. 3 Month Payment Holiday Option
A 3 month payment holiday option allows you to pay your first bond installment three months after registration.
If you choosing this option a maximum of 27% of your income can be used to pay off your Bond.