SA Home Loans (2023) ▷ Before You Apply, Read This Now!
Who is SA Home Loans?
SA Home Loans is a specialist mortgage provider using safe, but innovative ways to offer a range of home loans to South Africans.
They are mortgage specialists who offer home financing solutions tailored to individual needs.
The vision is to be SA’s most trusted home loan provider by putting our clients first and providing an amazing experience on their home ownership journey.
What makes SA Home Loans different?
- Not a bank.
- Flexible, approachable, and service orientated.
- Pioneered a new way of providing home loans by linking you directly to the money markets and passing the savings on to you.
- Risk-free, innovative mortgage specialists.
- South Africa’s only specialist mortgage provider that works with you to find the best solution to your home financing needs.
Besides providing home financing for new purchases, we also specialize in “switching”.
What is Switching?
When you already own a property and have a home loan and wish to switch your home loan to another provider to put yourself in a better position financially.
This could be because you get a better rate, but there are lots of other considerations too.
You may switch to get better access to the equity in your mortgage or to take advantage of product features that reduce your risk, or you could look for better service and support from your home loan provider.
A range of finance products for all homeowner needs.
- Home Loans
- Special Home Loans
- Personal Lending
- Further Lending
Client Service Helpdesk
- 0861 888 777
- +27 31 571 3150
Homeowner’s Cover Claims
- 0861 103 740 (24h hotline)
Sales Contact Centre
- 0860 2 4 6 8 10
- +27 31 576 5863
- 0861 113 414
- +27 31 560 5300
- +27 31 562 0362
Properties for Sale
Often referred to as distressed property, these become available when clients unfortunately cannot meet their repayment commitments and homes must be sold at below their market value.
The aim is to assist clients with marketing their property to achieve the best possible sale price for the property.
These can represent a wonderful investment for buyers if careful homework is done.
As many homes are found for the ordinary South African, there are, however, a small percentage of clients who find themselves unable to honour their repayment obligations because of various factors.
Possible ways are provided that can allow them to keep their homes.
Unfortunately, sometimes, financial circumstances do not allow clients to continue to meet their repayments.
These properties may be foreclosed on for SA Home Loans to recoup the outstanding balance on the home loan.
5 Types of Distressed Property Sales
- Sale in Execution
- Property in Possession (PIP)/ Repossessed Property
- Insolvent Estate properties
- Deceased Estate properties
- “Sell Assist” Properties
SA Home Loans has partnered with Private Property to make these properties available online for interested buyers to view.
SA Home Loans Insurance
1. Home Owner’s Cover
Protecting your most valuable assets from loss or damage.
- Home owner’s insurance plan linked to your home loan account.
- Convenient, paperless process.
- Affordable and comprehensive protection policy.
- 24-hour emergency claims hotline opens 7 days a week, 365 days a year.
The structures which are covered are:
- The buildings and outbuildings on your property
- Tennis courts
- Swimming pools
- Gate posts, gates, and fences (excluding hedges)
- Boundary and other walls, and garage doors
- Permanent fixtures to the buildings
- Motors for electric gates and garage
- Paved, brick, concrete, asphalt, and stone surfaced areas (excluding gravel)
2. Bond Protection Plan
Easy-to-afford life insurance that protects your home loan.
Advantages of the Bond Protection Plan
- Peace of mind knowing your home loan is secure.
- Policy premiums are conveniently managed off your home loan account.
- Valid claims under any of the benefits are paid directly to your home loan account.
- Up to four bondholders may be insured under the policy.
- Paperless application. An accredited sales consultant will phone and explain the policy to you.
The Bond Protection Plan offers these benefits in the unfortunate event of:
- Death: Settlement of the outstanding bond balance up to a maximum of R1.5million.
- Temporary Occupational Disability: Covers your monthly bond instalment for up to 24 months. The maximum instalment payable will be equal to the monthly instalment of an outstanding home loan balance of R1.5 million.
- Retrenchment: Covers your monthly bond instalment for up to 12 months (this benefit is only available where life cover is a condition of the loan). The maximum instalment payable will be equal to the monthly instalment of an outstanding home loan balance of R1.5 million.
- Permanent Occupational Disability: Settlement of the outstanding bond balance up to a maximum of R1.5million.
Protect yourself against rising interest rates by capping your monthly repayments.
- Protection against rising interest rates.
- Once-off premium tailored to your home loan balance.
- Choose between 1% and 2% above your interest rate.
- Your home loan rate will still move down if interest rates decrease.
- Conveniently managed off your home loan account.
- You don’t have to outlay the money to buy CAP. You may access funds in your home loan to pay this once-off premium.
- The premium will be determined by the size of your home loan balance and your decision to CAP at either 1% or 2% above your current rate.
- By capping your interest rate at 1% or 2% above your current home loan interest rate, your effective home loan interest rate will not go above your selected CAP rate for 2 years.
- Your interest rate will still go down when national interest rates decrease.
- When interest rates rise above the selected CAP rate, your instalment will increase in line with the rate increase. However, any interest paid more than your selected CAP rate will be immediately refunded to you.
SA Home Loans Calculator
How is my Affordability Calculated?
The amount you can spend on a home is calculated by adding together the maximum loan amount you could qualify for and the cash you have available for a deposit.
Your affordability, or the maximum loan amount you could qualify for, is determined by using a maximum percentage of provable household income.
This is a maximum of 30%.
A deposit will reduce the amount you need to borrow.
A deposit also helps by reducing your monthly bond repayment and lowering the total interest payable over the term of the loan.
How are Repayments Calculated?
Your monthly home loan instalment is calculated by using the intended loan amount, the potential interest rate, and the planned term of the loan.
Considerations such as your credit profile, your income type and the deposit amount will all be factors that influence the interest rate calculation and repayment amount required on your home loan.
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