Congratulations, your home loan was approved! Now what?

It’s time to start planning to move into your new home, or get a tenant for your investment property, and prepare for your very first home loan repayment. It’s essential to meet the deadline for every repayment on your home loan to ensure your credit score stays in tact and your chances of applying for more credit are not affected.

Choose your repayment date

When applying for your loan and before registration, you will have the opportunity to advise the bank on your preferred repayment date for the home loan debit order to run. It is advisable that you request for a date that is a few days after your salary deposit, to ensure there is sufficient funds in your account. Returned debit orders may not affect your credit score, but they will negatively affect your internal scorecard with that bank.

When to expect the first payment after approval

Your first home loan instalment will typically be due one month after your bond is registered. Bond registration usually takes about three months from the time your loan is approved. Therefore, you can expect to start making payments approximately four months after your home loan is approved.

Which bank were you approved with?

Depending on the bank you were approved with, your first repayment may differ slightly. As an example:

First National Bank (FNB):

• FNB requires the first payment to be made within 15 to 45 days after registration, as:
• The first instalment will be due 15 calendar days after registration on the debit order date selected, following the expiry of the 15 calendar days.

ABSA/Standard Bank:

• ABSA and Standard Bank allow a 28 to 45-day grace period after the date of registration, so:
• If the registration date was between the 1^st to the 15^th of the month, the date of the first instalment will be due from the 1^st of the following month
• If the registration date was between the 16^th to the last day of the month, the date of the first instalment will be due from the 1^st of the month after the following month

Nedbank:

• Nedbank requires the first payment to be made within 30 to 60 days after registration, as:
• The first instalment will be due in the month following registration, on the debit order date selected by the client.

Use a reputable mortgage broker

Using a reputable broker will ensure you get more value out of your home loan, by allowing you to compare multiple offers, interest rates and lending terms of all the mortgage providers in South Africa.

Phoenix Bonds is a premium mortgage broker in South Africa, with a proven track record (check out the reviews on Google).  For expert advice and personalised service, fill in your details HERE and one of our experienced Consultants will be in touch.