Lower Income Earners
This is just one of those loan types that varies vastly from bank to bank and a very difficult bond type to get granted or to even apply for! Here is a breakdown of the various lower income earner offers that ABSA, FNB, Standard and Nedbank offer.
ABSA Bank (MY HOME) - Absa offer 110% loans for the lower income customers and you can get up to 50% discount on registration costs from a selected panel of attorneys. This can only be met for customers earning a minimum of R1500 up to R7500(single or joint), excluding housing subsidy. There is also an option of fixed rate for 5 years. MyHome life cover is compulsory and borrower education is offered to all MyHome clients by ABSA bank themselves. Proof of salary deposit for 12 months is required. - SPOTLIGHT WATCH
FNB Bank (HOUSING FINANCE) - A maximum loan amount of R240K will be given by FNB Bank. This option will only be offered to clients that earn less than R10000 (single). A minimum monthly income of R2500 will be accepted. Loans that are excluded from this option include: Vacant land, Business or commercial property loans, switches from other banks, staff loans and small holdings.
Nedbank - There is no deposit required by Nedbank. The lower income bond will only be accepted by Nedbank is the amount is below R150K. A minimum monthly income of R2500. The Home loan policy is compulsory (loan protection assurance). Exclusions include: Vacant Land, Business or commercial loans, switches from other banks, staff loans and small holdings larger than 8.5Ha.
Standard Bank (DREAM START) - A tough bunch of guys to get the lower income (dream start) application approved. It's assessed extremely strictly on affordability - therefore a concession rate might not come into play. It might be prime plus up to 2% maximum. This is only for customers earning less than R8600 (single or joint income), excluding housing subsidy's. A minimum monthly income of R1700. Permanent SA citizens only. A requirement of one years stable employment. Ability to have paid off loan by retirement - the term is therefore the retirement date. Acceptable credit record. Ability to pay monthly. Exclusions include: Vacant land, business or commercial loans, switches from other banks, staff loans. A maximum LTV (loan to value) of 103%, provided that the bank risk is reduced to 83% by means of collateral guarantee. A Home loan policy is to be taken out and the amount insured is for up to R500K. Fixed rate is allowed.