Publish Date: 01/08/2019
Before submitting your home loan application, grow your deposit for better interest rates.
Despite South Africa’s tough economic climate, 2018 has seen an increase in the number of people applying for home loans. This is according to a new report released by the National Credit Regulator (NCR).
It is true that many banks now offer 100% home loans which don’t require a deposit, but remember the bigger your deposit, the smaller your home loan repayments will be. By reducing the amount you need in a bond loan, you are also reducing the amount of home loan interest you pay on the purchase. While African Bank doesn’t offer home loans, we do offer a range of saving and investment products that could help you save towards a deposit for your new home.
Look at these two examples:
Click here to view an infographic that breaks it down for you. It’s clear to see that growing a deposit is a good way to save in the long run!
Having a deposit will also improve your chances of having your home loan application approved and will put you in a better position to negotiate a more favourable interest rate.
Home loan deposit options
It’s important to do your research into the right savings and investment option for your goal. Look at timeframes and find out about interest rates, notice periods, tax-free returns and so on. Don’t be afraid to ask for advice and find what works for you. Having your own home is very rewarding, but making sure the repayments don’t cripple you financially is key.
Here, we break down African Bank’s Savings and Investment products, so you can choose the best option to help you save for your deposit. With African Bank currently offering SA’s Best Interest Rate, these options will help you grow your money:
Additional factors to consider when applying for a home loan
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.