Absa Homeloan – What To Look For
Saturday, July 24th, 2010If you plan on settling in South Africa with the acquisition of a home, then ABSA is the ideal bank to approach for your home loan as ABSA is well known for its professional competence and reputation and it treats those who goes to them for a home loan or advice with the utmost courtesy and politeness. Unlike other home loan lenders, they explain everything that is placed before you thus avoiding any surprises to the client. For your information, ABSA stands for Amalgamated Banks of South Africa.
ABSA provides a huge range of loans in order to solve your financial problems and also offers to you vast avenues to opt for the type of loan that fits truly to your requirements. Or you may say, ABSA will always take into consideration the circumstances of an individual and the level of targets to be achieved by him in the future and thus decide to fulfill your present requirements of the loan. They will consider you as their most important client and will take maximum care in reviewing the entire loan methodology for you and tailor-make it to your requirements.
You have to be prepared before applying for an ABSA home loan. The first thing to know is that you have to have a steady income from a trade or occupation and that your monthly income amount to at least ZAR3 500. Another criteria to keep in mind are that your monthly repayments on that loan should not exceed 30% of your monthly income. This rule is kept to protect Absa Bank as well as yourself as you will not be able to lose your house due to non-payment.
Then you’ll discover that there are two types of home loans offered by ABSA. There’s the loan with a fixed interest rate and the one with a variable rate. The fixed interest rate offers stability and you won’t see any ups and downs in your payments despite market changes. You won’t be able to make a budget as easily with a variable rate, but you will be able to take advantage of lower interest rates when they drop, which may be a better deal, if you can handle the fluctuations.
The reason for denial of your ABSA loans is narrated here. First one is that if you have a very bad credit record or if you are unable to prove your income. Second condition is that if you already have furniture, a vehicle or a home repossessed attributable to non-payment you will not qualify for an ABSA home loan. Third one is if you have any arrears with taxes, utility bills etc you will disqualify for an ABSA home loan. More over your bank accounts must be properly managed and you have to bring at least 6 month’s worth of your bank accounts.
The property by itself should not be in a dilapidated condition; but should be in a reasonably decent condition, not in requirement of extensive repairs. The property should also qualify for insurance. The bank, it is to be made known, will require you to oblige the bank with a homeowner’s assurance policy which will give protection or shield to cover the property from any possible damages due to natural calamities like storm or fires and such.
