Extra Value for Money – The Best Home Building Loans

Overview

As you build your home, you will need access to a variety of building materials. Building loans provide access to finance to enable you to afford renovations on your home.

As borrowers build their dream homes, funds are advanced in stages. So customers can go back to the merchant multiple times to buy the goods they need for each stage of building. It’s important that you choose a contractor who is financially stable. Being able to afford the monthly instalment of the bond is also a critical requirement.

Goods supplied will be the value of the payment to the Merchant and not the loan amount.

In South Africa, clients have access to a range of financial services through a multitude of financial institutions. Building loans offer individuals a simple and convenient way of ensuring that their dream house is built.

Where you can get the best home building loans:

Absa Building Loans

These loans are available to households with a single or joint gross monthly household income of R20 000 or more.

With this financial solution, both the vacant land (stand) and the structure can be financed on one loan.

Repayments start after nine months of bond registration, while payments are made on progress at various stages of the building process. Absa ensures that the owner is satisfied with the state and progress of the work before any payments are authorised.  An added benefit with Absa Building Loans is that you can track your application online.

FNB Building Loans

This is a home financing solution that enables you to build a new home or carry out renovations on an existing property.

Funds are advanced to the borrower in stages with this home building loan.

To qualify for this loan you need to be at least 18 years old, with a clear credit record and earning an income of R25 000. The property purchase price must be a minimum of R600 000.