The feeling that comes with buying a home for the first time excites like no other, and is without a doubt one during which hurdles are unwelcome. From the time of visiting a preferred area to hunt for a suitable property, applying for a bond, registering the bond, transferring the property to the day of occupation, it is quite an involved process with many role players playing their part. Needless to say, it is not only a process that is fraught with technical and legal hurdles, but also one that has a financial burden coming with it.

During times when the property market slumps due to economic constraints, a lot of potential home buyers get discouraged to proceed and place their bets on waiting until things improve. The financial implications that come with buying an immovable property are significant, and this is why a lot of people approach this matter with prudence.

Incentives on home loan facilities

In order to attract more first-time home buyers, banks offer various incentives on their home loan facilities. In this brief article we will give an overview of some of these incentives from different banks. Incentives are sometimes pocket friendly, and we encourage first time home buyers to consult with us so that we can assist in applying for a bond as well as advise them on which offers on the table are worth taking.

Nedbank

• Subject to conditions, bond and transfer costs of up to 105% can be included in the loan;
• 50% attorney discount;
• An applicant can apply for a maximum loan period of 30 years on appeal;
• For those who are main-banked with Nedbank, a concession of -0.25% will be offered, and even to those who move their account to Nedbank;
• Properties include new developments, sectional title and full title.

Standard Bank

• Bond and transfer costs of 105% can be included in the loan, subject to conditions e.g first time home buyers, maximum loan amount of R1.8 m;
• 0.2% concession will be offered where an applicant who has provided a non- Standard Bank transactional account for debit orders towards bond repayment, opens a Standard Bank transactional account for use towards the bond repayment;
• Where there is a deposit of less than 40% the interest rate (tiered) reduces as the balance on the loan decreases;
• Applicant can apply for a single interest rate should it be preferred.

FNB

• Bond and transfer costs of between 105%-110% can be included in the loan, subject to conditions e.g first time home buyers, existing FNB main banked customers or those who switch their primary transactional account to FNB;
• Maximum of 105% will be considered for young professionals under 35 years, earning less than R1.5 m per year and in such fields as law, actuary, architect, medical doctor or engineer.

ABSA

• 50% discount on bond registration fees;
• Up to 105% inclusive on costs; 
• Free access to Borrower Education for all first-time home buyers earning less than R26 100 gross income per month; 
• An additional -0.25% concession on interest rate for first time home buyers, subject to conditions; 
• For customers who already have an existing home loan, should a new loan be taken with ABSA they will qualify for 25% discount on the NCA initiation fee; 
• 90-day penalty interest waived for linked transactions. 

Phoenix Bonds - Bond Originators South Africa

The above is not an exhaustive list for the banks as forementioned and it will require further insight into the incentives that are on offer. At Phoenix Bonds we are available to consult with home buyers to assist them in navigating through the bond application process.

We specialise in bond origination and bridging finance. We assist home buyers to find mortgage bonds that have favourable terms, thereby saving you time and saving you money.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages.