Capitec Home Loans – How to Apply? – Features, Benefits and More
Capitec home loans will help you buy your first home or switch to a new house flawlessly. Unlike most big banks, Capitec Bank home loans are digitally-led for convinience. Additionally, Capitec Bank offers this loan in partnership with SA home loans.
While it is the bank that offers the financial aid, it is SA home loans that assess applicants’ qualifications and approves the applications. This article will provide you with all that you need to know to apply for a Capitec home loan.
How to Apply for the Capitec Home Loans
Buying a new home can be overwhelmingly exciting so much so that you can overlook some crucial aspects when buying the home. To avoid this, it is prudent for you to learn the process involved with buying a home before getting into it. So, where do you begin?
How to Calculate Capitec Home Loans
The first step is to know if you can afford to get the loan. Generally, people with a steady income, are highly likely to get a home loan.
Using the Capitec affordability calculator, you will be able to predict the home loan amount the bank may be able to offer. The calculator can also help you determine the monthly installments you may be required to pay back based on the value of the property you want to acquire.
Choose an Application Method
Capitec bank offers more than one application method. You can choose to call the contact centre and get all the details on the home loans and advice on your loan needs. You can also opt to apply online from the Capitec home loans website. The online application requires you to provide your personal information.
Provide Your Documentation
The next step requires you to provide valid documents. The bank will use this documents to determine your true identity, you eligibility for the load, and to get your personal information. It is one of the ways that the bank ensures it can track you if things don’t work out according to plan.
Approval of Credit
The credit team from the bank analyses the documents that you provided alongside data they get from the credit bureau to perform a credit assessment. If everything checks out, then your application will be accepted. Any problem that arises during the evaluation is addressed by a consultant who will contact you to find a solution.
Once the evaluation is successful, an appraiser is sent to value the property. If okay, you will receive a letter of acceptance that signals that your application was in order. The acceptance letter contains all the details regarding the cost and interest rate. Signing the acceptance letter signals the acceptance of the offer. After signing, you should give the acceptance letters back to the consultant.
The meeting is attended by an attorney from the bank who drafts the bond registration documents. Once the document is ready, the attorney will set an appointment for you to sign the document.
Immediately after signing the bond document, the attorney lodges the bond. It will take another 12 weeks for the bond to be registered at the Deeds Office.
Eligibility for Capitec Home Loans
You need to be qualified to receive the Capitec Home loan. Just like any other loan from Capitec, there are specific requirements that you need to take note of if you want to qualify for a Capitec home loan. They include:
- You should be 18 years old and above to apply for a home loan.
- You need to have an offer of purchase before applying for the loan. The seller should sign the offer for it to be valid. Capitec also requires a verbal confirmation of the offer.
- Your request may not be approved if you have poor credit or if you are under debt counseling.
- The monthly installments of the loan should not be more than 30 percent of your monthly income, whether you have a single or joint account.
- You should be ready to provide the necessary documents required to prove that you meet the requirements.
The process is simple. It will only take 5 minutes if you choose to do it online, or you can visit your nearest Capitec Bank branch. The requirements are slightly different depending on whether you are permanently employed or self-employed.
For the Permanently employed, you should provide:
- The last three month’s salary slips
- The latest three months bank statements
- A copy of your South African ID
- A copy of a marriage certificate (when required)
- A signed offer to a purchase agreement
- Assets and Liabilities statement for loan totals of not less than R 2.5 million
For the self-employed applicants, you should provide:
- A copy of the signed offer to purchase agreement
- A copy of your Identification Card
- Copy of your business registration documents or trust deed
- Your latest two years financial statements
- Your latest bank statements for six months that are fully stamped
- Copy of your marriage certificate (if necessary)
- Personal Assets and liabilities statements
- Proof of continuous income
- Financial statements from the last two years
- The current management accounts are not older than two months signed by both the accountant and applicant if the financial statements are older than six months.
Repayment Plan of Capitec Home Loans
Before taking out a Capitec home loan, you need to be sure that you can afford to pay back the loan. To ensure this is the case, Capitec Bank provides an instant online estimator that can help you identify how much you can qualify for and to identify how much you should pay monthly and the suitable time frame.
Ideally, you should only take out a loan that is not more than a third of the net income.
Benefits of Capitec Home Loans
- The online application process is straightforward. You are done in only four easy steps.
- The bank gives you control over the application allowing you to track any stage of the process.
- The bank offers you very competitive interest rates based on your profile. You also receive a discount on the bond fees of up to 50%.
- A dedicated property finance consultant leads you throughout each step of the process.
- A quick affordability calculator can help you ascertain if you can afford to take out the loan and the time it will take to pay it back.
Buying a new home may be an exciting venture. But before you get into it, you need to carefully assess whether you can meet the costs that come with it, or not. Use Capitec Bank’s affordability calculator to determine your suitability for the loan and plan ahead. If everything is good and you sign a purchase agreement, you can apply for a quick home loan by following the steps detailed above.