ABSA Home Loans – How to Apply? – Features, Benefits and More
Owning a home can be both exciting and overwhelming. It requires a lot of money and research. However, if you need financing, ABSA home loans have you covered. As long as you have an active bank account and a good credit score, you can get yourself a loan to finance your new or second home.
How to Apply for ABSA Home Loan
Applying for an ABSA home loan is easy. You can either physically visit your nearest branch or apply online. But before you begin the application process, you have to choose the best type of home loan for your needs.
ABSA Home Loan Types
There are four types of ABSA home loan. They include:
- Switching your current home loan from another bank to ABSA
- New ordinary home loan
- Get funds through the existing home loan or Readvance or Further advance
- New building loan
Documents Needed for Home Loan Application
Each category of home loan applicants has to produce a set of documents to qualify for a loan.
Variable Income/Self-Employed and Full-Time Employed
- Offer to purchase
- Identity document, that is, temporary resident permit or SA ID or foreign national passport
- 3 months of bank statements
- 6 months’ of the most recent payslips as proof of income
- Employment contract for newly appointed individuals with no payslip
Pensioners
- Latest 3 months personal bank statements showing the income declared
- Latest 3 months bank statements on your business account.
- Proof/evidence of pensioner status
- Annual pension increase letter or annuity statement
Legal Entities/Juristics
- Latest 3 months personal bank statements showing the income declared
- Latest 3 months bank statements on your business account.
- 2 years consecutive financial statements signed by either an accounting officer or a registered auditor or a chartered accountant
- A registered accountant or bookkeeper’s unqualified letter
- In exceptional circumstances, you have to submit the IT34
Other Income
- Individuals with existing rentals should submit the latest Signed Lease Agreement
- In case of divorce, you need to submit divorce agreement/divorce decree
- In case you are unmarried, you need to submit a copy of the maintenance agreement
Steps for Online ABSA Home Loan Application
- Load the ABSA home loan page on your device
- Scroll down to the “Apply for an ABSA home loan” button, highlighted in orange. Click it
- You will be directed to a new page with home loan application procedures. Fill in each part correctly, and submit your application.
ABSA home loan department responds within 24 hours after your application. So, you will know if you qualify for the loan or not in a few days. However, before applying for the loan, you can use the bank’s home loan calculator to determine your ability to pay for the home loan and if you are a suitable candidate or not.
ABSA Home Loan Pre-qualification
After applying for an ABSA home loan, the bank evaluates your application to determine if you pre-qualify. Loan pre-qualification helps you to determine your loan affordability. A home loan estimator is used to estimate your new home affordability score. Some of the criteria to pre-qualify for a home loan include:
Having a Long-term Monthly Salary
You are self-employed, and your business is stable with an excellent financial reputation
Having a Positive Credit Score
If you pre-qualify, the bank awards you a certificate that sells you out to home agents and sellers. After pre-qualification, you can easily track your loan progress by simply login into your ABSA home loan account.
Features of ABSA Home Loan
ABSA boasts of several features that categorize loan candidates according to their financial abilities. They classified their home loans into three sections that include:
My Home
This is the home loan that is given to people who earn a maximum of R25,400. The loan applies to both single and joint accounts. Suppose qualified candidates get a 100% home loan once you show them your dream home. You also have time to join a homeownership education program that enlightens you about loan homes and the best homes under your budget. You also get a 50% discount on the bank’s attorney bond registration costs.
Young Professions
There is nothing as impressive and satisfying as investing in a home as a young person. ABSA bank has a home loan program that caters to first-time home buyers or young professionals who wish to own a first or second home. Young professional’s home loans give you a 105% bond for property worth not more than R 1.5 million. You also get a 30% discount on the banks’ attorney bond registration cost.
This kind of loan makes you unique in that you don’t have to visit an attorney. Instead, the bank sends one to you for you to sign your documents. So, you, the bank, make your process smooth all the way. Besides, you also benefit from an insurance package that safeguards your family, property, and belongings.
Private Banking Home Loan
ABSA private banking home loan offers you a dedicated and skilled personal banker to guide you with your financial planning money matters and take you through various innovative home loans. You also get the privilege to the bank in exclusive bank surroundings in their bank suites. People under this category can use a multi-plan option that allows them to link several accounts to a single credit facility.
Benefits of ABSA Home Loan
ABSA offers you a home loan for all your needs. You can apply for the loan and come to standard with various benefits such as:
Flexibility
Once you apply for a home loan with ABSA, you can manage it online. You get access to your monthly repayments and information on additional payments.
Availability
ABSA home loan is available to any active member. Provided you boast a good credit score and will take a loan for a new home, the bank will fulfill your wish.
Financial Access
Once you pre-qualify for the loan, the bank gives you up to 100% financial support.
Choice
This is the bank that allows you to choose between a fixed or variable interest rate. If you choose the fixed interest rate, your payment will be the same amount of money throughout the loan term. As for variable interest loans, you will pay unequal amounts throughout the loan period. That means you can pay prime interest in one month and a low one in another month. However, the good news is that you can always change your interest rate terms with ABSA bank.
Discounts
ABSA home loans boasts of a variety of benefits. These discounts are available to individuals with a monthly salary of R30 000 or less. They include:
- 100% home loan
- A discount of 50% on bond registration fees
- No initiation fee
- Connection to great insurance and retirement schemes
- Qualification to government housing subsidy programs
- 50% discount on attorney bond registration costs flexible repayment terms for up to 30 years
- If you’re already an ABSA reward member, you get 10% cash-back on My Telnet home connectivity products and service or Fidelity ADT monthly subscriptions
- The chance to apply for the bank’s Homeowners Comprehensive Insurance financial product for your structural property cover
Confidentiality
ABSA offers a secured service which keeps your loan information confidential and doesn’t share it with any third party. In case of information leakage from the bank, you must hold the bank responsible for the security breach.
Security
The bank ensures it encrypts all your information so that third parties cannot access it. However, it is also your responsibility to protect your bank login details so that individuals with malicious intent cannot steal them. You can do this by always logging out of your ABSA online home loan account after use and changing your password often. You can access the loan online or use the banking app.
ABSA home loans are among the competitive home loans available in today’s market. They not only offer you good interest rates, but also have discounts and financial services for different categories of clients. These loans also have a flexible repayment plan to accommodate challenges that come with the changing times.
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