The quick return of 100% mortgages has surprised many property finance experts in SA. Although the return has been quick, it has also been very cautious. Banks such as ABSA, FNB and Nedbank are all offering no deposit homeloans again. The only difference is the terms and conditions regarding these bonds.
ABSA HOME LOANS
ABSA Home Loans are offering 100% bonds with a very unique structure. The bank is willing to finance a major portion of your property finance and then use a Pension Supported House Loan (PSHL) to secure the rest for bond. PSHLs are loans offered to members of a pension or provident fund for the purpose of buying or building a house.
FNB and NEDBANK
FNB and Nedbank, on the other hand, are offering full 100% bonds on any purchase of their Repossessed Properties. These banks are obviously trying to get rid of these properties, that are a becoming a serious financial burden, and are now willing to make the purchasing process much easier for potential buyers.
There is a growing trend, among buyers who don’t fulfill above criteria, to secure their deposits using a credit card or personal loan . This is particularly true for clients who have low debt levels.