Own the home you ve always wanted

Transcription

1 Home Loans Own the home you ve always wanted

2 Contents Absa Home Loan 4 MyHome Home Loan 5 Absa International Mortgages 6 Pension Powered Home Loan 6 Building Loan 6 Buy-to-Let 7 Absa HelpUSell 7 Further Advance 8 MultiPlan 8 Interest Rate Options 9 FlexiReserve 9 ReAdvance 10 Collateral Security 10 Insure your home to protect your investment 10 Home Loan Value-Adds 12 estatements 13 Sales, Service and Support 14 Useful Links 14 Home Loan Calculators 14 Home Loans 3

3 Welcome home! Every weekend you get the paper and study the property section. You search and search. You re about to give up hope. Then, one day, you walk into a house and you get that feeling. This is the one you ve always wanted. Your dream home. At Absa, we know that feeling well. That s why we do what we do making dream homes a reality. We ve been doing it for years and it s still as rewarding as the day we started. Our range of personalised home loan solutions makes home finance accessible. We look forward to welcoming you to your new home. Absa products make it easier to buy your dream home Absa Home Loan Absa offers you a range of different home loan options to consider because we d like to relieve the anxiety that comes with making such a big investment. Some of the benefits of having an Absa Home Loan: Repay your loan over 30 years or choose the common repayment term of 20 years. Depending on your need and affordability, you can either increase or decrease your loan repayment period at no charge. Remember, though, that this will affect the length of your repayment term. If you re working on a very tight budget, having a longer loan term means you will repay less every month, but you will pay more interest in the long run. We can help you choose the interest rate that suits you by linking your home loan to a fixed or variable (changing) interest rate. Your monthly repayment can either be fixed at one amount (for the fixed term you choose) or it can vary according to changes in line with the prime lending interest rate, which varies each time the South African Reserve 4 Home Loans

4 Bank changes the repo rate. The repo rate is the South African Reserve Bank s official lending rate to the banks. You make the monthly repayments with a dueamount debit order. This means that the debit order amount will be the same as the monthly home loan repayment whenever it changes. This prevents the possibility of your home loan account going into arrears. You can make additional deposits into your home loan account at any time. Doing this will reduce your interest cost and you will pay off your loan quicker. We offer many features which allow you to design the perfect home loan solution to suit every stage of your life. MyHome Home Loan* We want to help you to own your own home one day. But we understand that an investment of this size, with all the associated costs, can be scary. If you qualify, we ll put you on a training course to help you learn how to look after a property, manage your finances and draw up budgets. We d like to show you that buying a house can be a rewarding experience. We require that you take out life cover so that in the case of death, your home loan can be paid off. You can choose your own life insurance or you can get cover from Absa Life without a medical examination. As a condition to the loan, we require that you take out homeowner s comprehensive insurance. This is to provide you with protection for your fixed assets in your home. You can choose your own homeowner s comprehensive insurance service provider or you can get cover from Absa Insurance Company. * This product applies to customers earning a single or joint monthly income of R or less. Home Loans 5

5 Absa International Mortgages If you live overseas and have decided to make your home in sunny South Africa, Absa International Mortgages will make this possible for you. Our relationship with Barclays means that you can consult with knowledgeable people with a long history of successful investments, wherever you are in the world. Pension Powered Home Loan A Pension Powered Home Loan is simply another way to finance the buying of property or renovations. The accumulated savings in your pension or provident fund to which you belong is used as security or collateral for the money you borrow for your home. The amount borrowed is guaranteed by the Fund your pension benefit is not reduced by the amount of the loan. Your employer will deduct the monthly loan instalments from your salary or wages each month to repay the loan. You must repay the loan in full before you retire or leave the fund so your retirement savings remain intact. In order to make this loan option available to you, your pension fund or provident fund will have to sign an agreement with Absa For more information, call Building loan Your dream home might still be just a sketch or a plan or an idea in your head. We can help you build this dream into the home you ve always wanted. The Absa Building Loan is a home loan paid out in a structured way to fund a building project. This is how a building loan works: As the building progresses payments are made to the developer/builder by means of progress payments. 6 Home Loans

6 All progress payments must be authorised (signed) by you. You must familiarise yourself with the state and progress of the building works on site before authorising such payments. The final payment is only made once the work is completed in full. An assessor will visit the site prior to payout of each progress payment to inspect building work progress against the contract used to approve the loan. Interim interest is calculated on the daily outstanding balance and is capitalised to the account monthly once a payment from the account is made. You should consider paying the monthly interest charged on any progress payments made to save on interim interest since this can add up over the building period (normally 9 months) until you commence with your normal monthly repayments FlexiReserve will not be available until such time as all progress payments have been effected and the loan paid out in full. Repayment commences after 9 months from registration, irrespective of whether the building is completed or not. The repayment is calculated on the outstanding balance at the time. Once the full loan amount is paid out, a new repayment calculation is done on the total amount outstanding including all interest, fees and payments made. After the loan is fully paid out, the loan becomes a normal Absa Home Loan. Buy-to-Let If you want to buy property and then rent it out, Buy-to- Let will help you estimate the rental income that you can use to pay off the home loan on such a property. This allows you to see what you can afford to buy. Absa HelpUSell At Absa we understand it can be difficult to make your monthly loan payments during these tough financial times. However, to avoid legal action or even the loss of Home Loans 7

7 your home, you still have to make these payments. This is why we re offering you Absa HelpUSell, a service with added benefits that helps you to sell your property at a market-related price to repay your bond, prior to the sale of your property at Sheriff Auction. With Absa HelpUSell we work with property experts who will value your property realistically, and help you sell your property for the best possible price as quickly as possible. For more information contact us on Further Advance The Further Advance is an increase in your home loan, where we register an additional bond over your property. You will qualify for a Further Advance if your property has increased in value or if you wish to increase the value of your property by renovating or extending. MultiPlan MultiPlan is an Absa-unique home loan option that consists of a primary account (your original home loan account), with one or more secondary accounts linked to it. It gives you the flexibility to create the optimum structure to reduce your monthly repayments on other expenses and minimise your interest costs. You also have the choice to name the account for the purpose required like renovations, university fees, holidays, used car and store accounts. You can choose any term that suits you as long as the term chosen does not exceed that of the primary account. With each account having its own name, repayment term, interest rate and FlexiReserve facilities, you could save money by financing other purchases at the home loan interest rate, which is generally a lower rate when compared to other finance options. Even though all your accounts are essentially combined into one, the individual account numbers will be maintained, which allows you to keep track of all your accounts. 8 Home Loans

8 Interest Rate Options We ll help you choose between a variable interest rate and a fixed interest rate. A variable rate will change in line with prime lending interest rates, which varies each time the South African Reserve Bank changes the repo rate. We can change your variable rate to a fixed rate at any time, if you apply for this change. A fixed-rate option is set at a specified rate for a specified period and is not affected by the movement of the prime lending interest rate. Various fixed-rate terms are available and you can choose another fixedrate option or change to a variable rate once the existing fixed-rate term has expired. If you wish to terminate the fixed rate agreement before the expiry date of the fixed-rate term, the following penalty will apply: minimum 1,00% in addition to the variable rate over the remaining term of the fixed rate contract. FlexiReserve If you have paid extra money into your home loan account, you can use it if you need it, as long as the loan is not in arrears. By paying extra money into your home loan, you reduce your monthly outstanding balance immediately. You can gain access to these extra funds as soon as you need it via the internet, with Telephone Banking, at ATMs or any Absa branch, as long as you have an Absa Transactional Account. Customers without an Absa Transactional Account can withdraw a bank cheque at any Absa branch. For example: you have a monthly repayment of R You pay R3 000 that month. The FlexiReserve amount available to you is R500. When you make a withdrawal this will result in an increase in your outstanding balance and we will calculate your repayments over the remaining term of your loan. Home Loans 9

9 ReAdvance If you want to use the money that makes up the difference between the original home loan amount granted and the current outstanding balance (what you still owe), you can apply for a ReAdvance. This is a onceoff application for money up to the percentage of the home loan amount you were granted. This will increase your monthly repayments. The term of your home loan can be renegotiated or left unchanged. Collateral Security Collateral security is extra security provided by a borrower to make up the deposit shortfall on a home loan application. The following collateral security is acceptable and can be used as a deposit on your home loan application: Cession of Absa Fixed Deposits 100% of the value of the investment** Cession of fixed deposits from other financial institutions 90% of the value of the investment** Life insurance policies with surrender value** **Terms and conditions apply. Insure your home to protect your investment So you ve taken the leap and bought a home. Your next step? Insure it! To help protect your assets, we offer a range of insurance products. Homeowner s Comprehensive Insurance Cover Protection for your fixed assets The fixed assets in your home include the walls, fitted cupboards, fitted carpets and flooring, lights and roofing. In other words, the things you leave behind the day you leave your house. 10 Home Loans

10 Homeowner s Comprehensive Insurance protects the structure of your property against events such as: Fires, explosions, lightning, storms, floods and earthquakes Subsidence (when the earth collapses beneath your house) or landslides Damage as a result of housebreaking or theft Loss of rent or rental value Hiring of guards Damage to your garden Burst or overflowing geysers and water pipes Absa Homeowner s Comprehensive Insurance includes many benefits The amount insured increases annually to minimise the risk of you being underinsured in the years to come A 24-hour call centre for emergencies Geyser maintenance cover for geysers Accidental death cover for the bondholder The policy can be linked to your bond and the premiums are included in the bond repayment for your convenience For more information, visit your nearest Absa branch, absa.co.za or call Protection for your moveable assets If you were to turn your house and the garage upside down and shake it, all the things that would fall out are what we call moveable assets. Cars, lawnmowers, furniture, beds, heaters, tennis rackets, computers, rugs, TVs, right down to clothing, ornaments, jewellery, watches and cellphones are moveable assets. Absa designs affordable protection for your vehicles, the contents of your home, as well as the items you take out of your home with you. Our insurance cover can also provide benefits like: Home Loans 11

11 Car hire Customers can select a flat-rate excess Motoring assistance, including towing and locksmiths Home disaster assistance, including glaziers, locksmiths, plumbers and electricians A loyalty programme, which offers discounts on many useful products and services To apply for short-term insurance, speak to an Insurance Adviser at an Absa branch or call Absa idirect on Please note, if your property is a unit in a sectional title complex, the body corporate is not responsible for arranging this type of insurance; therefore you are responsible to ensure that you have insurance in place. Absa Life Insurance Absa Life will ensure that you are covered in the event of death and/or disability. Please note, cover for disability is optional and you can choose whether to have it or not. If you choose Absa Life cover, we ll debit your home loan account with the premiums of your life policy. For more information speak to an Absa Financial Adviser based at an Absa branch or call Absa Life on Home Loan Value-Adds Absa One Call Home Solution The Absa One Call Home Solution is exactly what the name and brand represents. A one-stop, call-in solution for all your discounted moving and home requirements and services, courtesy of Absa Home Loans. Absa Home Loans has partnered with an established company, to bring you this value-added solution. The Absa One Call Home Solution is a convenient and free*** service to all new and existing homeowners to make their moving and living experience a more hasslefree and cost-effective exercise. We will coordinate with our service providers for you and with the specially negotiated deals we have in place. 12 Home Loans

12 To become a member of Absa One Call Home Solution, all you need to do is register with us and we will provide you with a unique reference number that will entitle you to make use of all our special offers and services. Whether you are moving into a new home or enhancing your current home, Absa One Call will ensure your renovations are taken care of. You will be given your own personal coordinator, whose sole responsibility is your household! Absa One Call focuses on all home improvements and custom-made products that need a personal touch. For more information, call ***The co-ordination of service providers is a free service; however customers are responsible to pay each service provider for the work that they perform. Absa Value Bundles This includes monthly cash back into your Silver, Gold, Platinum, Potentiate or Islamic Cheque Account with a Value Bundle pricing option for having an Absa Home Loan. Terms and conditions apply. For more information visit your nearest Absa Branch. estatements Receive your bank statements by it s a great way to save time and the environment too. It s fast, convenient and easy Your statements are easy to view, print or save You no longer have to deal with paperwork Your statements are password-protected, encrypted and digitally signed Together, we ll be doing our bit to save our natural resources To receive estatements, logon to Absa Internet Banking, call or visit any Absa branch. Home Loans 13

13 Sales, Service and Support For more information on any of the products and features you ve read about, please speak to an Absa consultant at the Absa Home Loans Contact Centre on , us at or visit absa.co.za You can also call a Home Loans Express Agent on to come and see you it s at no charge. Business hours on weekdays are 08:00 to 20:00. Business hours on Saturdays are 08:00 to 13:00 (closed on Sundays and public holidays). Useful Links Visit absa.co.za and follow the link to the home loan s section. You can also apply for your home loan online at absa.co.za. Home Loan Calculators Thinking of taking out a new home loan and want to find out how much it will cost in registration charges, transfer costs and attorney fees? You can now calculate the actual costs involved in taking out a new home loan all with just a click of a button. To calculate your costs in no time at all, go to absa.co.za/absacoza/calculate to set your mind at ease. 14 Home Loans

14 Absa Bank Ltd Reg No 1986/004794/06 Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7 Item number: WHSE