The Different Nedbank Home Loans

In the first half of the year Nedbank Home Loan earnings rose by 25% which they hope will increase even more by the end of the second year. Their aim is to implement different strategies to reach their target by helping clients of different economic thresholds with the aim of being recognized as the most affordable bank in the country.

NedBank has two different types of Home Loans which are:

• Ordinary Home Loan
• Alphabond

The ordinary Home Loan is tailor made for those who can afford to pay cash and registration fees etc. for their new property and a period of up to 30 years is allowed to pay back the loan. While there is no maximum amount set, the minimum that can be requested is R70, 000 and the full amount can be financed if necessary. The interest rates can be variable or fixed and you also have the option of registering for a second home loan. Another benefit that the Ordinary Home Loan offers is Readvance. With Readvance, you get to access the difference between the amount you have already paid back and the original amount loaned.

If you are to qualify for an Ordinary Home loan there’s a credit requirement policy of NedBank which is that your monthly income should be at least R 2500 as single or with a partner and that you are in possession of a South African identification document. Once you have been approved for the loan, you also get the facility of being able to pay more than the minimum monthly requirement of interest so that you will be able to reduce the payment period as well as save on interest.

The Ordinary Home Loan is ideal for those who wish to buy residential property or a vacant piece of real estate for the purpose of building or development.

Alphabond Home Loan

Alphabond Home Loan is for those who wish to buy a home, but don’t have the necessary cash for a deposit, or even for registration fees and costs of transfer of property etc. However, the Alphabond scheme also offers loan terms up to 30 years while they have two different types of payment options which are the 108% loan and the 104% loan. The 108% guarantees your cash back while with the 104% loan you can commence your repayments only after 4 months. If your requirement is for less than 100% of the loan, the bank is willing to offer you a concessionary rate. Debit Order payment however is compulsory with an Alphabond loan.

Once again the minimum loan amount is fixed at R70, 000 while there is no fixed maximum amount. With the Alphabond scheme, too you get a choice between fixed rates of interest or a variable rate of interest and a Readvance which has already been explained in the Ordinary Home Loan.

Here too, your monthly income should be at least R2, 500. However you should provide a statement from your employer confirming your employment at the same place for at least 2 years or more. Alphabond however is limited to citizens of South Africa.

NedBank is famous for its prompt and professional services which is much appreciated by its customers, They are ever willing to do all the leg work and show you all options available in order to get the best terms and interest rates possible to suite your personal requirements.

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