Nedbank Mortgages

In South Africa, the Nedbank company is one of the largest banks. Its headquarters are in Johannesburg, and is one of the newest member thats has been incorporated in the bank world. This banks offers its customers a variety of commercial and personal financial services within South Africa and various parts of Africa. There are many convenient locations of where the banks are placed in South Africa.



A Summary:

Nedbank offers home loans as part of its services. The home loans that are provided allow their future clients, to purchase a first or second home, a vacation home, an investment property or have home renovations. This home loan from Nedbank allows the client to negotiate a payment plan that can last up to 30 years, at a variable of fixed rate. They will be able to allow the client to obtain a 108% home loan for a first time home buyer, and give you options that will suit your financial requirements.

Your payments monthly will include the following: interest and capital, life insurance premium (if you can apply for one), homeowners insurance premium and the administrative costs. This allows the customers to pay their loan off a lot sooner than what the agreed length of time was. You can have your payments fixed on an amount, have your monthly payment increased by an annual percentage or by choosing the length of time in which you pay off your mortgage.

Who qualifies for the loan:

An applicant that has bad credit won’t be able to apply for Nedbank home loans. If they aren’t able to manage their bank accounts, have bad history of payments for bonds, behind schedule in utility or tax payments or you already had some property, furniture or vehicles repossessed because you weren’t able to pay. If you are wanting to buy a house and you need a home loan, and you happen to be in those categories, fix your credit rating and financial situation before you apply for an application.

Information for Application:

You need to fill out a qualifying application. The information you need to provide them with is a, credit check, financial status, employment history, your debt and debt repayments capability and your payment history, will be need to be provided to see if you qualify. The applicants needs to provide them with some documents as well, such as, your previous salary receipt or a financial statement (if you are self employed), marriage certificate if you are applying as a married couple, identification, you last 6 months worth of bank statements, if you have a bond, you need to provide a statement or a title deed if you don’t have a bond.

Financial Implications:

What you borrow is based on what you earn. Your monthly payments shouldn’t be more than 30% of you income. This will be decided in the process of approval. Allow 8% to 10% of the purchase fees, which can include, your down payment, conveyance fees, transfer duties, bank charges, utility costs, homeowners, bond fees, moving costs and taxes.

Before your loan can be approved, majority of banks, will ask the applicant to have a home owner’s policy put in place, unless it already comes with the deal. The bank can recommend what insurance agent they have for the policy, but the applicant should have a look around for the best rate for them. The bank may need the applicant to have a life insurance policy put in place, if they don’t already have one. This will help the family of the applicant in case they were to pass away and the loan can not be payed.