Home Loans at Nedbank |Tips to find the Lowest Rate

Home Loans at Nedbank |Tips to find the Lowest Rate

If you think that owning your house is an unattainable goal, you may not be familiar with Nedbank Home Loans. Stay with us and learn how to take out a home loan at Nedbank. We will walk you through the process and show you how to get the lowest rates, what documents you need to have with you, what you can do with this home loan and a lot of other burning issues you need to know.

How does Nedbank Home Loans Work?

Nedbank offers home loans tailored to meet your every need. Nedbank Home loan is a secured loan, thus, the house you are buying or building will act as collateral of your loan. Usually, the loan term is 20 years, but it can be extended up to 25.

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How much do I have to Earn to Qualify for a Home Loan at Nedbank?

All banks need to be 100% sure you are going to reimburse them the money you borrowed. One way in which they can have a certain guarantee of this is requesting you to have a permanent source of income. Experts say that you should only devote 28% of your salary to a home loan in order to be on the safe side. Nedbank will require earning a monthly salary of R2 500 for their building and ordinary home loans.

2 Reasons for you to Use an Online Home Loan Calculator before Requesting a Loan at Nedbank

Not all of us know that there are online calculators to project our loan. With these tools, we enter certain information and they automatically show us how much will our repayments be. We want to show you the 2 reasons you should absolutely consult loan calculators before requesting a home loan at Nedbank, or any kind of loan at any bank.

  1. They’ll help you make a more informed decision. How so? After you consult these calculators you will have a better grasp of how much you would have to pay if you repay your loan in ten, fifteen or twenty years. With this valuable information, you should start doing calculations and asking yourself if you can afford that number.
  2. After using loan calculators, you might be able to compare the estimated interest rates offered by different credit companies. For instance, if you use our loan calculator you will get a list of the best banks offering loans. In this way, you’ll find out if Nedbank is the best choice for you.

How to Apply for a Home Loan at Nedbank?

Nedbank finances the total amount of the property you wish to buy or build; thus, Nedbank Home Loans provide 100% Bond. This is one of the many benefits you will get if you apply for a loan at Nedbank. Don’t worry; keep reading and you will get to know the other awesome advantages of Nedbank home loans. 

First, we want to tell you how and what documents and qualifying criteria you need to meet to apply for this loan. Before all else, knowing what information the banks need from you is paramount.

  • The bank needs to verify your identity, and for this, you need to bring them your South African ID or passport.
  • Secondly, the bank will want proof that you are going to pay them back. The way to prove this is by way of your last three payslips and bank statements
  • Finally, a signed copy of the purchase offer.

Take into account that if you are co-applying the loan with your spouse, both you and your spouse must provide their IDs, payslips, and bank statements.

Now you are ready to apply for your loan. Nedbank offers a user-friendly online application to start your process. And, here comes another benefit we were talking about above: if you apply online for an ordinary home loan you’ll get a 50% discount on fees for registration. Good luck!

What Fees Will I have to Pay for Nedbank Home Loan?

If your home loan application is approved you will have some bank-related expenses. Nedbank’s initiation fee is of R6 037; this is a single payment. Good news, though, (we told you we would tell you more advantages!) if you are applying for an Ordinary Loan, earn less than R23 300 each month and the house you’re buying costs up to R760 000 you won’t have to pay the initiation fee. Also, you’ll have a monthly service fee of 69 rands. You may also have to pay transactional fees if you make your repayments with cheque or cash deposits. If you pay your loan through debit or transfer you won’t have to pay any fees!

Which Types of Home Loans can I Find at Nedbank?

Nedbank is one of the oldest banks in South Africa; over a hundred years serving in the credit market of our country. They offer three types of home loans: ordinary loans, building loans, and switch loans. Hang out with us and learn all about them.

Does Nedbank Let you Finance a Vacant Land with a Home Loan?

Many people prefer to take baby steps when building their home mainly for economic reasonsand want to ask for a home loan to finance vacant land. Unfortunately, this is not a possibility with Nedbank. They only provide finance for buying a house or the building of a house. There are other excellent options in South Africa, though. For example, consider Absa home loans; with Absa Building Home Loan you can do just that: buy vacant land and build your house there with the same loan.

2 Things you can do with a Nedbank Building Loan

We told you that Nedbank offers three options for home loans. This section will be devoted to its Building Loan.

With Nedbank Building Loan you can choose to do two things:

  1. This loan is amazing because it allows you to design the house of your dreams. This house will probably be the house you’ll live for the rest of your life, so, having it made at your order is a plus.
  2. You can also ask for this loan to make renovations to your home. You may want to build a garage for your car, or maybe an extra room for your grandchildren. You can do this and more thanks to this loan.

Bear in mind that you must appoint architects that are registered with the National Home Builder Registration Council (NHBRC). This is mandatory, but you will learn in the long run that it’s also the best decision. Hiring trustworthy and experienced professionals will go a long way towards building or renovating your house the way you want.

What are the Requirements for Nedbank Building Loan?

Above we covered the requirements that all home loans at Nedbank have in common: ID, salary receipts, bank statements, and the offer to purchase. For a Building Loan, you will also need to provide the bank the architectural plans for your house approved by the Municipality. Moreover, you have to hand in an itinerary of finishes and relevant expenses. Also, you will need to present the bank the contract you signed with the builder. Finally, the policy for all-risk under the name of the builder, and proof that the builder belongs to the NHBRC must be provided to the bank as well.   

What is a Nedbank Ordinary Home Loan?

A Nedbank Ordinary Loan is a home loan designed for those who want to buy a house or make improvements to the houses they already own. This loan is ideal for those people who don’t feel comfortable with the idea of having to wait for months before being able to move into their new houses. Or those who don’t want to take care of all the endless details involved in building a house from scratch.

Is there a Way for Low-Income Earners to Access Nedbank Home Loans?

This depends on how low your salary is. According to the latest Household Affordability Index half the population lives with less than R1 230 a month. If this is your case, then, unfortunately, you cannot request a home loan with Nedbank. However, if you earn that amount and your spouse earns a little more than that, let’s say he or she earns 1 400 rands, then you may be able to ask for their loan by co-applying to it since they require you to earn at least R2 500.

Where can I make my Queries about Nedbank Home Loan?

If you don’t understand something about Nedbank home loans or you are not sure which type of loan is best for you, don’t hesitate to contact us. Below you will be able to leave your questions or comments. We’ll be thrilled to hear from you and we will do all we can to help you out.

How long does it Take for a Nedbank Home Loan to be Approved?

After you apply for a loan, the bank needs to review all the information you provided them and check your credit profile. Usually, Nedbank needs a week to approve your home loan. Nevertheless, this time frame may be extended due to some problems with your paperwork.

How does a Nedbank Access Bond Work?

Nedbank calls this facility NedRevolve. When you take out a home loan with Nedbank and pay a higher amount in your installments you can then have access to that surplus amount and use it to make repairs, or other improvements to your house, or for an emergency, or in the event of unexpected expenses.

With this facility, you can also make lump payments when you have extra money in your pocket. For example, you inherit an important amount of money and you don’t know what to do with it. You now know that you can deposit it into your home loan account to use it at a later time.  

To benefit from this useful tool, you need to have a transactional account with Nedbank. If you don’t already have one, you can apply online to open it. Once you have it, all you have to do is go to the nearest branch and ask to have your home loan account linked to this transactional account.

How Can I ask for a Reverse Mortgage at Nedbank?

A reverse mortgage is a kind of loan that is targeted to elderly people who own a house and want to convert a portion of the market value of their house into funds. These funds can either be in a lump payment or in a series of payments. The loan is repaid when the property is sold out

Nedbank used to offer this service under the name of the Nedbank Home Income Plan but ceased offering it in 2008. In South Africa, there is one company that offers this loan: More2Life. To qualify for this loan you must be over the age of 65 years, have a house under your name, and being able to continue paying taxes and insurance for your house.

Is there a Home Loan Specific for First-Time Buyers at Nedbank?

The Department of Human Settlements of South Africa devised a Subsidy to help first-time buyers to access their home: the Finance Linked Individual Subsidy Programme (FLISP). This subsidy is paid to the bank where you have your home loan account and allows you to pay lower installments.

Nedbank can help you obtain this subsidy if you qualify for it. The amount of this subsidy will depend on your income, but it varies from R27 000 to R127 000.

3 Issues to Consider When Taking a Second Bond on Your Nedbank Home Loan

You already asked for a home loan with Nedbank and you’re already enjoying living at your own house. However, you want to make some improvements; it’s your house, after all, you want it to look just like you’ve pictured it, right?

With Nedbank, you can request a Further Loan. Here we will tell you 3 issues you should consider:

  1. The minimum amount for the loan is R50 000
  2. Nedbank will analyze approval on the basis of their credit lending requirements and the value of the property
  3. Mind that the interest rate on your home loan may suffer changes.

On the other hand, this loan is given under certain provisions. First, your house must have a higher value since you requested the first loan. Second, your house must have had surplus value when you took out the home loan. And, third, the reason for taking out a further loan must be to make improvements in your house.

If you made up your mind that a Further Loan is just what you need, apply online. The bank will let you know their decision within hours.

What are the Benefits of Nedbank Home Loan Protection Plan?

One of the most important and biggest investments you might make in your life is taking out a loan to buy your house. It’s what we all dream of, owning a house to raise our children and live happily and quietly. But, what happens if the unexpected occurs? We don’t know what the future holds for us, we always hope for the best, but we also need to be prepared.

With Nedbank Bond Cover you’re taking care of your family. If you are unable to work because you get a disease or become disabled, or if you die, the Bond Cover will take charge of your loan.

These are some of the benefits of this insurance:

  • Nedbank will assist you in the management of your debt
  • If you pass away, the bond will pay up to R1 500 000 of the amount due to your home loan
  • This insurance lets you choose between receiving the insurance cover in a single payment or having the insurance to pay the monthly repayments of your home loan.

What are the Requirements for Applying for Nedbank Home Loans for Self-Employed?

Being self-employed is not an impediment for you to ask for a home loan at Nedbank. The only difference lies in the documents you’ll be requested to provide Nedbank with. Since as you work for yourself, you don’t have payslips to prove you have a regular income.

If you are applying as an individual you will need to provide Nedbank the last six original bank statements (stamped). If you are requesting the loan on behalf of your company you will have to bring the bank the audited financials of the lasts months, the documents of the company, and a letter from the auditors. 

Can I take a Home Loan Payment Holiday with Nedbank?

You should always pay your installments in a timely manner; this helps you avoid any kind of inconvenience. However, life isn’t that simple. Is it? We’re faced with different situations and sometimes we just can’t cope with them. If you are having a rough month because something unexpected happens and you can’t pay an installment, Nedbank allows you to pay for that payment you were unable to make at your following installment or to get up to date in over some months.  

Where to Find Nedbank Home Loans Reviews?

Finding reviews on the internet can be a challenge. We run that search ourselves to answer this question and results are so divided that it’s hard for us to come to a conclusion on the matter. Our recommendation is always asking around. You surely have a friend, a relative, or a neighbor who has taken out a loan with Nedbank. After all, it’s one of the oldest and biggest banks in South Africa! This can be a great decisive factor: Nedbank’s reputability is unquestioned and proved by its more than a hundred years of service and experience in the credit lending industry.

What are the Benefits of Switching my Home Loan to Nedbank?

Many times people ask for a home loan at a credit lending company because they think it’s their best option and after a few months, they get discouraged since the institution does not rise up to the occasion. You are not obliged to continue your business with a company that doesn’t provide you with what you need. You’re a client; the service should be satisfying to you.

If you’re nodding, maybe you’re in this scenario. Why not switch to Nedbank? We can’t stop emphasizing that this bank has a long history in the credit market of this country. It means a lot: it means this company has been doing its job well. But that’s not the only benefit you get when dealing with Nedbank. Reliability is only one factor. Here are some other specific home loan switching-related benefits:

  • Nedbank offers longer loan terms than other banks. You can pay your loan back in up to 25 years.
  • You can get a 50% discount on the fees for bond registration
  • You could save over R6 000 in the initiation fee
  • If you apply online you can get up to R15 000 cashback!

What is Nedbank USSD Home Loan Calculator?

First, let us start by explaining you that USSD stands for Unstructured Supplementary Service Data, a system also known as quick code. USSD is a protocol of communication that allows exchanging data in a similar way as the SMS that we all know. 

Nedbank has detected that many low-income people felt that they did not stand a chance to own their house and did not even bother to ask for information to the bank. Nedbank felt that this had to do with them felling uncomfortable with using online loan calculators or apps. 

For this reason, Nedbank launched an USSD home loan calculator for people to calculate their bond through their phones. In this way, home buyers from low-income environments can see if they can qualify for a loan to buy or build their houses. 

How is this done? You must dial *120*001*123# and follow the prompts. As a result, you will find out what amount of money you can ask for a home loan at Nedbank. You will also be able to speak to a consultant if you prefer it. 

This has to do with the fact that there has been a number of state announcements, such as subsidies and waivers, that favored for a better rate environment. This means that interest rates have decreased considerably allowing for more and more people to being able to ask for a home loan. In fact, interest rates have never been this low in South Africa for over 50 years. 

By creating the USSD home loan calculator, Nedbank hopes that more and more South Africans feel more comfortable to investigate Nedbank home loans further. IN this way, people from disadvantaged environments can find out if they are fit to ask for a home loan and forget for once and for all about renting. 

SA vs Nedbank | What are the Main Differences?

The first difference between these two providers is that Nedbank is a bank and SA Home Loans is a private lender. They also differ in terms of how long they have been in the credit lending business: Nedbank was founded in 1888 while SA Home Loans started their operations in 1999 (over a hundred years later.

In terms of the services they offer we can begin by saying that SA Home Loans specializes only in home loans whereas Nedbank has a vast portfolio of facilities, like personal loans, bank accounts, business loans, and many more. Also, they differ in the repayment time periods they offer. Nedbank offers a maximum of 25 years; SA Home Loans 30.

They have similarities too, of course. They both offer utilities to access your surplus funds to make improvements in your house or for you to use in the event of an emergency. Finally, both Nedbank and SA Home Loan let you switch your home loans.  

This is all for today. The objective was to show you that you can have Nedbank as your partner in achieving your goal of owning your house. We told you all about their options, their requirements, their reputability, among other matters. We would love to read your feedback. Please, use our comment section to tell us if you know Nedbank and if you’d recommend it. Did you know about their home loans? You can also make good use of our site and ask any questions you want.

Preguntas Frecuentes

Can I apply for a mortgage without making an initial payment?

No, you need to make an initial deposit.

Which is the longest financing period available?

The longest financing period is 300 months.

Can I get cars with Nedbank loans?

Sure, you can .

Can I get a 75% home loan as a foreigner who is self-employed?

Nedbank offers home loans to foreign nationals, who are non-South African citizens who are living and working in the country. In other words, you can qualify for a home loan which covers 75% of the value of the property. Being self-employed is not an obstacle to apply for a home loan, and you will need to provide six original stamped bank statements. 

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