So apply for a 100% homeloan today and benefit from Absa Home Loans bringing you the “Family Springboard” offering.
The Family Springboard offering has been designed for first time home buyers to help them to substitute the deposit requirement of the home loan with collateral security in the form of an Absa Fixed Deposit provided by a helper.
The helper can be a family member, friend or any individual willing to assist the first time home buyer with a deposit on the home loan application.
The helper would provide collateral security in the form of an Absa Fixed Deposit as a substitute to an actual cash deposit; the fixed deposit would need to be equal to 10% of the purchase price of the property.
The helper can apply to have the fixed deposit / collateral security released when the loan balance reaches the required loan to valuation (LTV) level of the bond approval.
The release of the helper’s collateral security will be subject to credit assessment.
The purchase price for this offering is capped at R1.5million with the maximum term being 20 years.
With this offering, both the helper and the first time buyer benefit, the helper earns interest on the Absa Fixed Deposit and the first time home buyer is able to start their home ownership journey.
Important to note, the borrower must qualify for a Loan to Purchase Price / Loan to Valuation of equal to or greater than 90% in terms of the normal LTP/LTV criteria and pass the Bank’s affordability assessment on a 100% mortgage loan.