Standard Bank Home Loans
For most people, the purchase of a home is the largest investment they will ever make. Because of the importance of realty purchase, the financing options should be thoroughly assessed, as there are several different types of loans available. Standard Bank offers four main types of home loans: first time buyer, standard, variable rate and AccessBond. Each of the loans differ in one way or another, thus making the purchase of a home possible for virtually everyone who wishes to become a home owner instead of a lifetime renter.
The First Time Buyer loan
The First Time Buyer loan is a popular loan from Standard Bank and is a good loan for those customers new to the real estate market. The qualifications for a first time buyer loan are a little more lenient than the qualifications for some of the other real estate loans. The applicable criteria to qualify for this loan include the following: applicants must be first time homebuyers, have a combined income of R6,000 per month minimum, desire a loan in the amount of R 100,000 to R1,000,000 and agree to structural insurance on home financed. The aforementioned criteria are important for buyers in the real estate market to know in order to make an educated choice when the time comes to choose a financing option.
The Standard loan
The Standard loan is the most popular type of loan, hence the name. This loan is similar to the First Time Buyer loan, but the criteria are a bit different. Of course, the most glaring difference is obvious just considering the name, as the Standard loan is open to applicants who have purchased real estate in the past, and find themselves in the market again. This loan requires a 5% down payment, as the bank will finance only 95% of the cost of the real estate. Additionally, the homebuyer is responsible for any fees or registration costs, as these cannot be added to the selling price of the home. There are different types of Standard loans as well, including those with fixed or variable finance rates.
Fixed interest rates are self-explanatory; meaning that no matter what the prime interest rate increases or decreases to, the interest rate of a fixed standard loan will stay what it was set at on the day the mortgage closes. A variable finance rate standard loan is slightly more complicated than the fixed rate loan when it comes to understanding the legalese, but it can be simplified by understanding that the finance rate will change with the prime rate, either increasing or decreasing. However, written into the contract is a minimum and maximum percentage rate that the finance charge will never go over or under. This is so the home buyer will know what the maximum monthly payment will be, should prime rates shoot up to a high level. This makes a variable rate loan much more palatable since the unknown is taken out of the picture.
Lastly, Standard Bank offers what it calls an AccessBond type of financing for real estate purchases. This is a type of financing that can be linked with the above real estate loans once the loans fall below 100% financing. The amount is based on the equity in the home, and can give the homebuyer a line of credit equivalent to any equity available once the home is purchased, allowing them to finance 100% of the value of the real estate.
The amount of the AccessBond will increase as the house is paid for, month after month. The money is accessed via a credit card or similar account issued by Standard Bank. Unlike the real estate loans, the finance charge of the AccessBond is calculated daily, and any payments made toward it can actually lower the total interest payment on the primary real estate loan. Standard Bank offers the aforementioned benefits to its customers, along with competitive rates and personalized customer service so a homebuyer need not worry because there will always be support personnel available to see to the customers’ concerns or answer any questions.