Benefits of a building loan

  • Enjoy the freedom of designing a living space that suits your needs and tastes
  • Get the money you need to build your dream home from the ground up without delay
  • Increase the value of your property by improving and renovating your home
  • Finance your renovations to speed up the process and benefit from great interest rates

How building loans work


We’ll make payments straight to the contractors on your behalf once they’ve started working, with your permission.

receive payment

You pay only the interest while the construction is taking place. If you have an existing loan and are renovating, you’ll continue to pay your existing loan and interest on the building loan.

make payments

You’ll only start paying the full monthly instalment once the construction has been completed and you advise us to make the final payment to the builder.

Download our step-by-step guide (PDF)

Taking the first steps

Whether you’re building a new home or renovating your existing one, it’s important to plan and budget. Here are some of the early steps you should be taking:

  • Look at your monthly finances and use our affordability calculator or pre-approval tool to see how much you can afford to spend. 
  • If you have a single or joint income of at least R10,000 a month and a healthy credit record, you may qualify for a building loan.
  • Use your finance info to decide on a budget and the loan amount you’ll need to finance the project.
  • Get all the documents that you’ll need to apply for the building loan ready.
  • Complete your architectural designs and get approval from your municipality for building your new home or renovations to your existing home.
  • Hire NHBRC approved building contractors and finalise the building plans and contract with your builder.
  • Remember that while construction takes place,  you still need to pay the interest on the building loan, as well as your current home loan instalment or rent depending on your living arrangements. 

Why choose a Nedbank home loan

competitive offers

Competitive offers

We'll finance up to 100% of the property value, or up to 105% if you are a first-time homebuyer, to cover the bond and transfer costs.

See offer
attorney fees

Get 50% off your attorney fees

We offer a special discount to clients who take up their home loan with us: pay only 50% of your bond registration fee.

See offer
progress payment

Progress payments

Manage your building loan progress payment requests easily using Online Banking. 

Visit Online Banking
preferential rate

Preferential interest rates

Enjoy a preferential interest rate on your home loan if you bank with us, or switch your main bank account to Nedbank to enjoy the special rate.

See offer

*Terms and conditions apply

Download our Home Loan pricing guide (PDF) for home loans.

Ready to apply for a building loan?

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