We all know that purchasing your first home is an exciting yet daunting prospect. After the months of scouring the newspapers and following well-meaning but somewhat pushy property agents around from property to property you eventually find the right home for you and your family and then the process of financing your new investment is the next obstacle. But it needn’t be arduous and traumatic. Nedbank home loans are the ideal solution for home buyers no matter what your financial situation and Nedbank offers different types of bonds designed to fit your circumstances and your pocket. Two of these solutions are “Ordinary” loans and the Nedbank “Alphabond” loan solution.
Like most Nedbank products the Ordinary home loan has a built-in flexibility and can always be engineered to suit your unique needs. This solution is aimed specifically at home buyers who have the cash at hand to pay the registration fees and transfer costs in respect of their new property and simply need the direct financing for the actual bond amount. Like most Nedbank home loans the Ordinary home loan has terms of up to 30 years and a financing ceiling of up to 100%, to make sure that you can completely cover the cost of your new bond through financing. Your loan will have to be for at least R70 000.00 but there is no maximum, so that R5 000 000.00 little apartment with sweeping views of Clifton beach is within your reach after all! You can even choose your interest rate to make it fixed or variable and the facility include the opportunity to register a second bond.
But the added bonus here is a Nedbank home loan special product called Readvance, which is included in your bond. Readvance is a highly flexible cash flow optimization tool that allows you to gain access to the difference between your original loan amount and that portion of the loan amount that you have already repaid, giving you a handy rainy-day fund for life’s little emergencies. Adding to the flexibility of this Nedbank home loan, you can make extra payments into your bond or pay a bit more than the minimum amount each month, or when you can afford it – all helping you reduce the term of your Nedbank home loan and increase your own financial security. But it doesn’t end it also include another Nedbank facilty called NedRevolve, an value-adding feature that means you can also access these extra deposits you make or you can use it as a way to accrue interest-free savings. You might think this home loan is beyond your reach but all you need to do to qualify is to earn at least R2 500.00 a month (alone or with your partner), meet the credit requirements and have a valid SA ID.
The second Nedbank opportunity worth a look is the Alphabond which is made for those customers who do not have the up front cash to pay the registration and transfer costs related to their home loan. It offers many of the same or similar benefits as the Ordinary home loan but here you have a choice between a 108%, and a 104% loan. Each has their own advantages, the 108% option means you get guaranteed cash back and with the 104% choice you will only have to make your first payment in month four. In addition to Readvance and NedRevolve (if your bond is less than 100%) you will also have access to another Nedbank facility, namely, Further Bond, which allows you to register an additional amount of money on top of your registered mortgage. The criteria to qualify are the same as for an Ordinary home loan except that you must be a first-time buyer and be able to show that you have stable employment in the same career for longer than two years.
Whichever Nedbank home loan option you choose, you’ll also have the added peace of mind of knowing that you are dealing with the bank you have come to trust for all your other banking needs.