Nothing is as soothing and comforting as the peace of mind that comes with living in a property you know is fully yours. Apart from the fact that you can do whatever pleases you in terms of decorations and settings, it is also a long-term investment. By buying a home, you are investing in an asset for yourself rather than a property management company. This is where banks that offer the lowest interest on home loans come in.
One of the major factors holding prospective homeowners from actually purchasing a home is finance. Finance is a setback to a lot of sectors. Now, have you always wanted to own your home but have limited resources to make it happen? Home Loans are now available with low interest rates to supplement your financial difficulties.
How about we quickly look at what a home loan entails before diving into the different banks that offer low interest home loans?
What is a low interest home loan?
A home mortgage is a loan given by a bank, mortgage company or other financial institution for the purchase of a residence. A low interest home loan is a form of a home loan that comes with a minimum interest. This type of home reduces the tension and the burden of repayment.
Requirements for a private home loan
The requirements for getting a home loan might vary, depending on the financial service provider. The following requirements are obtainable with a great percentage of South African credit providers;
- Valid South Africa ID
- Proof of income
- Schedule of monthly household income and expenditure
- Proof of address (A bill in your name which quotes your address)
- Offer to purchase
- Bank statement
Top 4 Home Loan providers with the Lowest interest rates in South Africa
The ever available credit service South Africa enjoys through different finance bodies is something to be grateful for. However, to enjoy these advantages, it is important to know which service providers are available.
In no particular order, the following is a list of 5 credit providers that offer the lowest interest rates on home loans?
Listed on the JSE, the Capitec Bank is one of Africa’s largest diversified financial services providers. Committing a great percentage of their resources on finding local solutions to uniquely local challenges. They are in the business of adding value and improving the lives of Africans. The Capitec loan offers a wide range of retail, business, corporate, and most especially home loans.
- FNB loans
FNB is the oldest bank in South Africa, and dates back to the Eastern Province Bank formed in Grahamstown in 1838. There are two things that stand out about FNB platform. The first is a story of survival – different circumstances in South Africa have posed many significant challenges in our history, all of which FNB has successfully met. Apart from the fact that they offer high grade loaning products, they have one of the best terms for home loans.
2. Sentinel homes
This is another great option for prospective homeowners. Sentinel Homes is an alternative home financier to banks and other home loan providers serving the Western Cape and Gauteng areas. They are the first South Africa company to offer an alternative to bond finance in the open market. The company is the brainchild of the team at Combined Finance, which has been operating as investors and financiers in the real estate industry since 2013.
3. Ned Bank
Ned bank is one of South Africa’s four largest banks. Whether you’re buying, building, or switching your loan, Ned bank is available to help you take each step in your property journey with confidence. Ultimately, they focus on ensuring you’re able to come home, every day, to your dream property.
Standard bank is a deeply rooted financial service provider. A home loan from a standard bank can provide you with a range of flexible options to help you make your next big move. Whether you plan on becoming a homeowner, a home builder or are already a homeowner. Their differentiator is their long-term efficiency and commitment to Africa.
Private mortgages can be helpful for certain situations and can be a creative solution for borrowers. Especially those who may have difficulty borrowing or simply need the flexibility of private lending offers. Weigh the risks to rewards before entering a private agreement and seek professional help for guidance as needed.