If you are a South African citizen then you should be well aware of ABSA. They are one of the leading banks and financial product providers of South Africa. ABSA is an excellent choice if you are a first time home buyer. They provide excellent services and financial security to their clients. In this article I will explain the two main types of loans available from the bank.
This is a very popular form of loan from ABSA. This loan will enable you to pay the same amount every month, for the term of the loan. When you are approved of the loan then your monthly rates will be calculated in conjunction with the interest rates which is set by the Reserve Bank of South Africa. What makes this loan so attractive is that you will know exactly what you will need to pay each month, thus making budgeting a breeze.
The other option available for home buyers is a variable-rate loan, unlike a fixed-rate loan, this option’s rates and fees can change from year to year. Your interest rates will be calculated on the over all yearly interest rates which are set by the Reserve Bank of South Africa. It is important that you familiarise yourself with the pros and cons of this form of loan. One of the most important advantages of an variable-rate loan is that if you took the loan out at a high interest rate, then you can see some saving if the interest rates are lowered at the next year. You will then have the option to contribute more to your loan itself or you can arrange to make a smaller payment due to the lower interest rate. On the other hand is it important that you know that this can go the other way around as well. If the interest rates go up then you can expect to make higher payments on your home loan. This makes it a bit more difficult to budget on the long run.
It is very nice attraction of this form of loan is that the various interest rates can cause the loan to balance out on the long run, and if you obtain the loan at a good time then you can save a lot of money on your purchase.
I would suggest that you do some research on the current interest rates of South Africa and see what professionals predict in the future. Consult with your local real estate agent on loans with ABSA and do thorough research on the internet. One can not go wrong with a loan from ABSA; they have been satisfying customers for years on end in South Africa.
We would just like to say thank you for all your help with regards to our bond.. You ladies have left no stone unturned with feedback and any question that we needed.One again a big thank you. All of the best
- Tashan and Dalton