Loans come in different forms. There are long-term and short-term loans. However, you only qualify for any of the loans according to your credit rating. The unending needs that come our way make us succumb to loans. It is almost impossible to explain the sigh of relief we have when we finally solve our financial needs. SA home loans are all you need to kick start your journey to owning a home of your own.
SA Home Loans allow borrowers to get money to buy the house of their choice while working towards achieving other plans. In view of this, information on what you should know about SA Home Loans are all-inclusive in this article.
About SA Home Loans
SA Home Loans is a non-traditional (bank) home loans provider that has played a significant role in creating a more diverse financial infrastructure in South Africa (SA). It was founded in 1999 and continues to flourish amidst great financial competition on a global scale. As a result, SA home loans boast of over 100,000 clients.
They ensure that you are secure and your security will be like that of the bank. This is because they will register your home in your name at the Deeds office.
SA home loans have shareholders such as; Public Investment Corporation, Standard Bank, and the Bolatja Hlogo Consortium.
S.A Home loans products
Under its ‘home loan products’ category, the company offers three mortgage products. The offer you choose will depend on the type of house you want for yourself and your family, your budget, and your willingness to pay interest.
1. The variable home loan option
Your home loan is tailored to fit your individual needs and can last up to twenty years. Throughout these 20 years, your interest rate will fluctuate depending on your risk profile at different points in time. You are also able to switch from another bank to SA Home Loan using the variable home loan option. Those who switch can get up to R75,000.00 in cash.
2. The ’30 year home loan’
Grants home loans for a period of 30 years. The interest rate on this option is variable and is tailored according to client credit risk. It is important to know that the 30 year home loan is available to clients purchasing a new home and who are less than 45 years old at the time of application.
3. The Edge Home Loan
Allows borrowers to only pay interest on a mortgage loan for the first 3 years of the loan. This allows borrowers to buy time to purchase the exact house they want without paying rent for the first 36 months. Note that the first 36 months of interest payments are not calculated at amortization, instead, the loan repayment period will commence after 36 months of paying interest.
The edge home loan is like no other mortgage lending option and works better for those who want to buy a home now knowing that their income will grow to match their repayments.
What are the requirements for SA Home Loans
The requirements for loans are what you must provide for you to get a loan. No financial institution will give you a loan without you meeting their requirements. The requirements are parameters that determine your eligibility for a loan.
The following are the requirements for SA home loans for individuals with salaries and individuals without salaries:
For individuals that earn salaries:
- Your proof of income or your latest salary advice. But if you earn commission, ensure you provide your latest salary advice (3)
- Recent 3 months personal bank statements
- Provide your personal assets and liabilities statement for loan amounts that are over R1,500,000.
- A copy of your Identity document
- Provide a copy of your marriage certificate or your ANC contract
- A copy of the purchase agreement
- Your latest 3 months bond statements
- Present the latest rates or levy statement or utility account statement
For individuals who don’t earn salaries:
- Your proof of income with a letter of drawings from an accountant
- Personal bank statements (latest 6 months)
- Your personal assets and liabilities statement.
- Business account bank statements (latest 6 months)
- Your latest 2 years’ annual financial statements
- If your annual financial statements are older than 6 months to date. You should sign and provide your current management accounts not older than 2 months together with your annual financial statements.
- A copy of your Identity document
- Provide the copy of your marriage certificate or your ANC contract
- Bring a copy of your registration documents or trust deed
- Get a copy of your purchase agreement
- 12 months bond statements
- Get your latest rates or levy statement or utility account statement
What is the maximum amount that I can borrow from SA Home Loans
A maximum loan amount is a total sum that you can borrow on a line of credit. Also, with a credit card, personal loan, or mortgage. In getting your maximum loan amount, lenders check your debt-to-income ratio, credit score, credit history, and financial profile. The maximum amount of loan you can borrow from SA Home Loans can be up to R100,000.
How does SA Home Loans work
Knowing how a particular loan works helps to remove the doubts about it. Some customers would prefer to understand how trustworthy their lenders are in giving them the fund they need.
Banks usually get their funds for home loan finance from wholesale and retail money. Besides that, they also get it from capital markets and then lend the money to consumers. However, the case is unique for SA Home Loans. The link you directly to the capital markets through a non-bank concept they call ‘securitization.’ Then they pass the savings on to you.
How can I apply for SA Home Loans
You have seen how Sa home loan works, the next thing you would like to know is how you can apply for the loans.
Here’s how to apply;
- Contact SA Home Loans loan sales centre
- You can complete the application over the phone. It includes a full affordability assessment,
- Send them your latest bank statements and payslips
- They will disburse the loans to your debit order account once they approve and sign your contract.
What is the interest rate for SA Home Loans
SA Home Loans review interest rates quarterly. It occurs on predetermined “reset dates” which are in the loan agreement.
Note: Your rate will not increase or decrease on the reset dates. It will be in line with rate changes the South African Reserve Bank makes.
However, the interest rate on SA Home Loans is 7% per annum.
How long does SA Home Loans take to approve a home loan
To begin the bond application process, you can contact your local SA Home Loans branch. Your South African identity document and proof of income are all that’s required. The approval process will be completed within 48 hours once all the necessary documentation is submitted.
Are there any additional fees on SA Home Loans
Some loans have additional fees or hidden charges. The lenders would prefer not to let borrowers know about it on time. SA Home Loans are transparent with their customers. There are no hidden charges or unpleasant surprises.
How fast can I get the SA Home Loans?
When you urgently need financial support, you actually don’t want to wait for too long. This is because your financial needs can’t wait for you as well. For SA Home Loans, you can have your funds in your account within 48 hours (two days). They credit your account once they approve your loan request.
What credit score do I need to get a mortgage in South Africa?
A good credit score encourages lenders to give you a loan. Good credit scores are between 680 – 766. While an excellent score stays in the 767+ bracket. You will need to move your credit score up beyond the 640 mark. If you want to increase your chances of qualifying for a home loan.
Is SA home loan a bank
They are not a bank.
SA company is flexible, approachable, and customer-focused. They have created a new way to provide home loans by linking you directly to money markets and passing the savings on to you.
Lenders provide loans to borrowers because of the interest they make from it. While borrowers borrow money because they have to solve their needs. Home loans can last from 10 to 30 years. SA Home Loans provide borrowers money to get the home they desire. No longer will borrowers have any more problems in acquiring their dream homes.