Nedbank home loans: What you need to know
Are you on the verge of taking out a home loan? Perhaps you want to know how that home loan works. You should be particularly cautious when applying for this type of loan if it’s your first time. A lot of the details, such as; repayment terms, documents, whose name the home loan should bear, etc. could worry you. However, the rest of this article will guide you through the entire process of obtaining Nedbank home loan.
About Nedbank
Nedbank is a top financial institution in South Africa. Operating with so much dedication to providing quality services to its members. They Offer wholesale and retail banking services and insurance, asset management, and wealth management.
The Home loan is just one of many financial services they provide. Even though they offer a wide range of financial products, Nedbank has a method of ensuring quality service in each product they offer.
Types home loans offered by Nedbank
There are two types of Nedbank home loans, ordinary home loans, and building loans. Below we will discuss both types in more detail.
- Ordinary Home loan
The ordinary home loan from Nedbank is a flexible loan that can be used to buy a new house or to renovate an existing one. It is necessary that property exists in order for a loan to qualify as a normal Home loan.
You may need to take out a life insurance policy when you apply for an ordinary home loan with Nedbank. This is to assure that any amount that a loan holder owes is paid by an insurance company should the home buyer die.
Benefits and features of the ordinary home loan
- At the beginning of your loan term, you get a variable interest rate that you can change to a fixed rate later on.
- You can get up to R15,000.00 cashback on the value of your loan.
- It has a standard loan term of 20 years. You can extend the term of your loan by up to 25 years if you wish. Your financial circumstances will determine the length of time you can extend your loan.
- Up to 100% of the purchase price can be financed.
- Your home loan can be settled sooner than what is agreed on in your contract. By doing this, you will be able to take advantage of the low interest rates applicable to early settlements.
2. Building loan
Nedbank building loans are used to finance the construction of a house on vacant land. Nedbank requires that builders you contract to build a house be members of the National Home Builders Registration Council (NHBRC).
There are two reasons why you should use builders that are members of the NHBRC, according to Nedbank. They include:
- NHBRC members will warrant protection against defects for the home.
- As a customer, you will be afforded protection against contractors who deliver substandard design, workmanship, and poor quality materials by the NHBRC.
According to Nedbank, both the borrower and the lender are protected by NHBRC.
A building loan is divided into several installments. In other words, the loan will be repaid in stages as the house is constructed. Upon completion of a certain percentage of building work, Nedbank will advance a series of payments.
Features and benefits of building loan
- At the beginning of your loan term, you get a variable interest rate that you can change to a fixed rate later on.
- You can get up to R15,000.00 cashback on the value of your loan.
- The standard loan term is 20 years. It is possible to request an extension of up to 25 years on your loan term. It will be determined by your financial situation whether to extend your home loan repayment period.
- Up to 100% of the purchase price can be financed.
- It is possible to settle your home loan earlier than the agreed term in your contract. In this way, you will be able to take advantage of low-interest rates applicable to early settlements.
How can I qualify for a Nedbank home loan
For Nedbank’s home loan, as with any other, you have to meet certain requirements. Before applying, you must meet the following requirements;
- You’ll need a valid South Africa identity card or document.
- Proof of your income.
- List of your expenses.
- A sales agreement or offer to purchase.
- Your banking details.
What you should consider before taking out the Nedbank home loan
There are things you must consider before getting the Nedbank home loan. They include:
1. Ensure you can afford the home loan
Before applying for a home loan, make sure you can financially meet its requirements. It can be a challenge to meet these demands since you may also have to meet several other expenses.
Additionally, consider how prompt repayment of your loan improves your credit score.
2. The home of your choice
Be sure to communicate your choice of a home to the bank as this will help them know the home loan that is best for you. Ideally, it is important to view the house you wish to buy in person, as what you see on the website may not really correspond to how it appears in person.
3. Await the outcome
After presenting your house of choice and your supporting documents, you await the decision. However, the loan application process can take as long as two weeks before approval.
4. Registering the transfer process
As soon as they approve your home loan, they have to register the transfer process to have the property in your name. They will also require you to pay transfer fees. Accordingly, prepare yourself for this since the transfer fees aren’t always included in your home loan.
Make sure that the loan includes the transfer fees before you sign.
The Finance Linked Individual Subsidy Programme (FLISP)
The Department of Human Settlements developed the FLISP. The aim was to provide affordable and sustainable first-time homeownership opportunities to South Africa’s citizens and legal permanent residents. Only people making up to R22,000 per month can qualify for the FLISP.
Requirements for the FLISP:
Besides earning a gross monthly income of up to R22,000. There are other requirements you need to make for you to get the FLISP. Some of these requirements include the fact that;
- Prospective applicants must be a South Africa citizen or permanent resident with a SA identity document
- Applicant must be 18 years or older
- A first-time recipient of a housing subsidy scheme.
- If you are a first-time homebuyer
- People who have approved home loan from a financial institution
- Have at least one dependent who never benefited from a housing subsidy scheme previously.
How does the FLISP work
FLISP is known for its excellent abilities to serve South Africans. They are:
- Upon submitting your home loan application, Nedbank will assess your credit. This helps to ensure that you can afford to repay your home loan.
- Upon approval of your application, they will conduct a property valuation immediately.
- If you are happy with your home loan quotation, you must accept and sign all documents with the bond attorney.
- During this process, the transferring attorney will work closely with the bond attorney, who will handle your bond application at the Deeds Office. Once that’s done, they’ll register the property in your name. However, the entire process can take up to three months.
- After they register the bond in your name, you can now start enjoying your new home.
Nedbank home loan self-service
Nedbank’s self-service offers customers the ability to access their home loan accounts by logging on via self-service banking. They can do this from the comfort of their homes at no cost.
How does Nedbank home loan self-service work
With the self-service, customers can manage their home loans and carry out various transactions from anywhere.
The following are what Nedbank customers can do with the self-service;
- Customers can view their statements online.
- There is a balance check feature available to them.
- Their payment information
- Transfer funds to and from their home loan account using their linked Nedbank current or savings account.
- They can bank with complete security, 24/7.
How do I set up Nedbank self-service for a home loan
There are some things you must do to get started with Nedbank’s self-service home loan. Take the following steps to activate your self-service banking profile:
- Besides being able to apply online, you can also call Nedbank’s Contact Centre on 0860 555 111 and tell them your interest.
- Prove your identity with your account number and proof of account.
- Ask them to create a self-service banking profile for you. And that they should send you the profile number.
- Use any of the self-service banking channels to exchange the temporary PIN you receive with the one you like, including:
How long does a Nedbank loan take to be approved
Once all required documents have been signed and submitted, the loan approval process can take up to two weeks.
How do I contact Nedbank home loans
To reach their customer service department, dial 0860 555 111. Additionally, Nedbank agents can provide expert guidance and assistance throughout the entire process. They also offer a callback service.
Internet banking: www.netbGet them to set up a self-service banking profile for you. And ask for the profile number.ank.co.za
Telephone banking: 0860 555 111
Cellphone banking: Nedbank.Mobi
SMS banking: *120*001#
Which South African bank is best for home loans?
The best banks for customer satisfaction
Several banks, including Capitec, FNB, and Nedbank, topped the survey in terms of overall customer satisfaction, while FNB and Capitec consistently exceeded customer expectations.
Final Thoughts
It is often best to take out a home loan in order to snag the home you want. Particularly, when finances are tight. Most lenders that offer personal loans, car loans, or student loans also offer home loans. A borrower’s credit scores will be in a better condition if they repay these loans promptly. Failure to repay these loans on time could result in further loan denials.