Nedbank is one of the most trusted banks in South Africa and when it comes to applying for a home loan you can be sure that they will provide you with some of the best deals in the industry. Nedbank is one of the first banks that a bond originator will contact when assisting their clients in applying for a home loan and they have a range of individually-tailored packages to suit clients who are looking to purchase their first home or looking to add on a second home to their current home loan package.
Nedbank Home Loan Packages
Nedbank has a range of home loan packages that are available to suit the needs of clients around the country and in order to find the best option you should contact a bond originator. The bond originator will take you through the various packages and provide you with advice concerning the best decision for your financial situation.
The Ordinary Home Loan that is offered by Nedbank is one of the most popular options for individuals who are looking to purchase their first home. In order to apply for this loan you will first need to ensure that you meet Nedbank’s minimum requirements for credit and these include being in possession of a South African ID. This loan can be adjusted to suit your specific financial situation but it is usually offered for a term of 25 years and the minimum amount of the loan is R100 000.
Fixed and Variable Interest Rates
Nebank offers both fixed and variable interest rates on their home loans and it is important to understand both these terms and the pros and cons of each before you pick one of these options.
Fixed rates are usually available at higher interest rates but this also means that the rates will not fluctuate and you will always be aware of how much you will have to pay on your loan each month. Nedbank will usually raise the overall amount of interest in order to protect themselves from rising interest rates, should the market take a turn for the worst, but you will be protected in this case for an amount of up to 10 years.
Variable interest rates are usually offered at lower rates but they could fluctuate at any time and you need to be prepared to pay more in the event that they rise. This option is usually chosen simply because it is the cheaper option of the two but you need to take care when picking a variable interest rate because it can quickly double or even triple your home loan amount if the property market is in turmoil.
Comparing Nedbank Home Loans
Although Nedbank home loans have a lot to offer clients in terms of interest and individual attention you should never accept the first loan offer you receive without comparing it to offers from other major banks in South Africa. A bond originator will assist you in finding the best offer by comparing Nedbank’s offer with other offers to determine whether this are your best option or not.