The Nedbank Mortgage Types

The end of apartheid brought about an unprecedented level of political stability within South Africa’s governmental structure. These changes have helped the world’s trust in the South African government to continue to rise, leading to a host of new investment in the nation. Most important has been the impact on both of the main home markets, for both mainstream and lower wage earning borrowers. For all categories of borrowers the average interest rates have been reduced by more than twelve points.



As part of its ongoing effort to increase the size of the market and is activity, Nedbank continues t create new options to make homes more accessible to the general public. Those people’s needs for a new home are diverse, with some looking for their first house, others wanting to invest, and still others simply moving to a larger home to accommodate growing families. Regardless of the reasons for the loan, Nedbank has the tools to help you achieve your goals.

Building loans for construction

Let’s say you don’t want to purchase a home that is currently standing, but would prefer to build your own. Nedbank’s solution is the building loan, which is easy to obtain if you have at least R2500 of monthly earnings and a positive credit rating. In addition, the NHBRC has to approve the building plans, which must involve construction of a home worth at least R150K. If you can meet the repayment test and are in compliance with the National Credit Act’s terms, you will be well on your way to receiving your loan.

The option of Buy to Let

For some South Africans, home purchases are sometimes used as an investment vehicle. We’re talking here about people who own their own home and simply want to buy another property t rent out to others as a means to earn money. If you have monthly revenue of R30K and an unblemished credit record, you need only to prove your ability to meet payments on a home that is at least R150K in value.

The HomeVision option

This is one of those special loan types that enable you to use any increase in value on your property to register higher Nedbank home loans than the loan requires. The resulting excess of funds can be used by you for other purposes in the future. If your income exceeds a monthly R2500, and you can demonstrate an ability to meet payments on a home worth at least R100K, then you may be able to utilize this option.

The Ordinary option

Nedbank also offers the more ordinary type of housing loan, adjusted to meet your circumstances. These loans are useful for development properties and residences alike, and fairly easy to qualify for. Monthly income of R2500 is required, as are the standard credit ratings. In addition, the home’s value must be at least R100K, and within your means as judged by the terms of the National Credit Act.

Nedbank’s loans are all capable of being set for 30 year terms, whether you are buying, investing, renovating, or constructing. In addition, both flexible and set rates of interest are available. Thanks to banks like Nedbank, you are closer than ever before to being able to purchase your own home.