Your monthly home loan repayment normally consists of:
- Basic instalment, which includes capital and interest.
- Homeowner’s insurance premium.
Homeowners insurance is compulsory, and it is a condition of the home loan to have insurance cover on all freehold properties at full replacement value. You must protect your home against natural disasters, such as fire, flood damage, etc. You may insure your home with Nedbank or choose your own insurance provider. For sectional title properties, this insurance is included in your monthly levy.
- Credit life insurance (if applicable)
Credit life insurance is optional, and you may take out insurance so that your home will be secured should anything happen to you. The policy terms and conditions will indicate the events and circumstances in respect of which you will be covered.
- Monthly service fee
You’ll pay a service fee for the costs of maintaining your home loan account. This fee will be included in your monthly home loan instalment.
Tip: When completing the home loan application, please select your homeowner's and/or credit life insurance requirements.
You will need to supply us with the following supporting documents:
- Proof of identity (a valid South African identity document or card, or passport) for you and the co-applicants (if applicable).
- The latest three months’ payslips or other proof of income for you and the co-applicants (if applicable).
- The latest three months’ bank statements for you and the co-applicants (if applicable).
- A copy of the offer-to-purchase agreement signed by all parties (if applicable).
If you are self-employed, an entrepreneur or commissioned worker:
- A copy of the offer-to-purchase agreement signed by all parties (if applicable).
- Proof of income: Letter of Drawings from an accountant.
- The latest 6 months’ personal bank statements.
- Personal assets and liabilities statement.
- The latest 6 months’ business account bank statements.
- The latest 2 years' annual financial statements.
- Where annual financial statements are older than 6 months to date, current management accounts that are not older than 2 months and are signed by the applicant and accountant must be provided in addition to the annual financial statements.
- Proof of identity (a valid South African identity document or card, or passport) for yourself and any co-applicant (if applicable).
- A copy of the marriage certificate or ante-nuptial contract.
- A copy of your registration documents or trust deed.
You will need to supply us with the following supporting documents:
- Builder’s all-risk insurance policy.
- Builder’s National Home Builders Registration Council (NHBRC) unit enrolment certificate.
- Builder’s NHBRC registration certificate.
- Minimum specifications and waiver of lien.
- Building contract.
- Approved building plans.
- Schedule of finishes.
- Survey general (SG) diagram.
Interest is charged once the first progress draw has been paid out, and is calculated only on the amount that the bank has already paid out.
Interest becomes payable once your first progress payment has been made. This ensures that accrued interest does not eat into the capital amount that has not yet been paid out by the bank.
Progress payments refer to the progressive draws in which the building loan is paid out. These draws are paid out in stages as the building progresses. Nedbank will advance the builder a series of payments on the condition that the bank is satisfied with the percentage of building work completed. The builder normally requests three to four progress payments before the completion of your home.
Interim interest is due once your first progress payment has been made. Should you not pay interim interest, it will be deducted from the loan together with any costs, fees and premiums payable by you that have not been paid. This is done before the final progress payment can be advanced.
If you do not budget for interest and expenses it can affect the remaining balance of your loan and could result in the builder looking to you to cover the shortfall from your own pocket.
No upfront payments will be authorised from your loan, you must make sure that the builder has sufficient funds to get started and to complete at least 30% of the building project. Your first full instalment becomes payable once the final progress draw has been paid by us.
It is a statutory requirement that the construction of all new homes is enrolled with the NHBRC.
NHBRC Warranty Scheme
The warranty scheme was established to provide warranty protection against defects for all new homes. The consumer will be given protection against contractors who deliver substandard design, workmanship and poor quality materials.
A housing Consumer has the right to:
- Within 3 months, instruct the builder to rectify non-compliance or deviation from the terms, plans and specifications of their mutual building agreement.
- Within 12 months, instruct the builder to repair roof leaks attributable to workmanship, design or materials.
- Within 5 years, instruct the builder to rectify major structural defects identified in the home which have been caused by non-compliance to technical building standards.
If a builder is unable or unwilling to rectify reported defects, the NHBRC can rectify the defects, following the completion by the consumer of a complaint and conciliation process.
Go to www.nhbrc.org.za for more information.
A repossessed property is a property that is bought back by the bank during a sale in execution as a way of recovering the outstanding debt on its home loan account. This process is only followed if the previous owner comes into financial distress, and is unable to continue with their home loan repayments despite the bank's attempts to assist through a payment rehabilitation programme.
- No transfer duties are payable when you purchase a repossessed property which means that you will enjoy a huge saving.
- Nedbank also pays all outstanding rates and taxes on the property.
No, you do not need to bid at a sheriff's auction.
- All repossessed properties are bought by us at an auction.
- All you need to do is submit a Nedbank offer to purchase directly to us.
Nedbank-assisted Sales is offered to qualifying Nedbank clients who are experiencing financial difficulty and are interested in selling their property.
Every single Nedbank client can enjoy the benefit of a self-service banking profile even if your only Nedbank account is a home loan.
- You only pay the attorney’s registration and transfer costs.
- There are no hidden costs to be concerned about.
There are no transfer duties to be paid, which means even further savings when buying a Nedbank-owned property.
- Rates and taxes including all arrear amounts will be paid by us up to the date of registration or the date of occupation, whichever occurs first.
- If any rates or taxes are outstanding when you purchase your Nedbank-owned property, we will cover it.
- To check the availability of a Nedbank-owned property, contact our expert team at the Nedbank Contact Centre on 0860 555 111.
- If the property is no longer available we will help you to find another one.
- If the property is secured, viewing access can be arranged with the property management company whose contact details will be displayed onsite at the property.
- Should the property be occupied and the occupant is not a registered Nedbank client or tenant, we will not be in a position to provide you with contact details.
- We do not guarantee the vacant occupation of Nedbank-owned properties (NOPs).
- If the property is occupied, you will have to obtain vacant occupation at your own cost once the property has been registered in your name.
Nedbank has made the following types of client communication available by email:
- Annual statement (sent in March).
- Quarterly statements (sent in June, September and December).
- Rate change letters.
- Instalment change letters.
- Finance charge rate letters.
No, there is no additional cost for this service.
- They are quick and environmentally friendly because there's no waiting and no paper waste.
- They are safe because your statements are digitally signed and password-protected so only you can view them.
- They are much easier to manage because they can be stored digitally on your computer.
With the exception of Adobe Reader, which you can download for free through a link in the email we send you, no additional software is required.
- Single or joint bondholders must use their identity number(s) to open eStatements or letters.
- Juristic entities and foreign nationals must use their 13-digit home loan account number to open eStatements or letters.
A sale in execution (SIE) is a legal process whereby properties are sold at a public auction by the local sheriff (appointed as an officer of the court) on instruction by an execution creditor (usually a bank) to the highest bidder at the fall of the hammer.
If a homeowner falls behind on their contractual repayments, we make every effort to contact them (by telephone, SMS, post and/or email) to understand their situation. This is important as we need to find the best possible solution either to rehabilitate the loan or to minimise the losses that the client will experience.
A sale in execution (SIE) is our last resort, as the financial losses to both our clients and us are significant.
We have several options available to our home loan clients in case of financial distress. We also aim to provide clear advice so that the client may fully understand the financial impact of each one. More information on ways to manage your loan can be found here.
In essence, there are five major scenarios when a client faces financial difficulty:
- Clients who have missed payments but are now able to bring their payments up to date can arrange with us to meet their current monthly obligations.
- Clients who can't bring their payments up to date but who can pay regular monthly instalments are assessed to see if their accounts can be restructured over a longer period. This option is available to clients who can afford the new instalment.
- We formally advise clients of their rights under the National Credit Act, 34 of 2005 (NCA), to approach a debt counsellor within a set period. We actively participate in and support debt counselling arrangements that meet the requirements of the NCA.
- For clients who can't afford repayment in terms of any of the repayment plans, we provide Nedbank's Assisted-Sales programme. This programme entails the marketing and selling of clients' houses through some of the country's leading estate agents in normal, non-distressed circumstances. The prices clients get for their assets from this process are usually far better than those from an SIE.
- Finally, if the client is unable or unwilling to sell through the assisted-sales programme, we have no choice but to limit our losses as far as possible by realising our security (i.e. selling the property) through the legal process.
The legal recovery process can be summarised as follows:
- We contact clients by telephone and mail.
- We have detailed conversations to understand our clients' financial situation and try to reach a solution (options 1 to 4 above).
- Once we have established that our clients cannot rehabilitate their loan and that they are unable or unwilling to sell their property to reduce their obligations, we initiate the legal process and issue a letter of demand.
- At a suitable time, we instruct our attorneys to issue a summons. This is delivered by a sheriff to the client's chosen address.
- This is followed by an application to the court to allow the property to be sold by a sheriff of the court. A judge assesses the application and ensures that a fair process has been followed.
- The next step is for the sheriff to set a date for the property to be sold by way of an SIE and to advertise the SIE in the Government Gazette and a local newspaper.
- We calculate a market-related reserve price aimed at measuring the price the client would receive for the asset to offset his/her loan.
- The SIE takes place on the scheduled day.
Our key message to clients in distress is to contact us so that we can work out the best solution together, rather than following the legal recovery process. So, if you find yourself struggling to make your home loan repayments, please reach out to us. We are always here to help you.
Where a valid lease agreement has been disclosed to the sheriff, they are obliged to offer/sell the property with the existing lease agreement in place, which effectively means that the purchaser will become the new landlord. If no one in the audience is interested in purchasing the property with an existing lease agreement, the sheriff is entitled to offer/sell the property without the lease agreement, which effectively means that the lease agreement ceases to exist immediately on the fall of the hammer.
The conditions-of-sale requirements would first have to be met and in many instances, the property might still be occupied. The occupant may be approached and arrangements can be made for the occupant to vacate the property or to pay occupational rent for a period agreed on between the occupant and the purchaser. If the occupant does not want to vacate the property, the purchaser may proceed with a formal eviction process once the property has been transferred into their name.
No. Properties sold at an SIE belong to the title deed holder or owner and not the execution creditor or bank.
To protect our client (the execution debtor) the execution creditor or bank will ensure that it receives a minimum price at the SIE (reserve price). To do this the bank's attorney bids on the bank's behalf. If no one else bids above the reserve price, the bank is then obliged to buy the property. This is called a property in possession (PIP). At Nedbank, we refer to such properties as Nedbank-owned properties.
It is not always possible to inspect the property unless the existing property owner has vacated the property. It is, however, recommended that the potential purchaser drives past the property to gauge the condition from the outside of the property and that research is conducted to determine the market value, suburb specifics, comparable sales as well as any costs associated with the property.
The purchaser is required to pay the sheriff's commission and a 10% deposit of the purchase price at the fall of the hammer. Thereafter, the purchaser remains liable for all outstanding rates and taxes, levies or homeowner association costs as well as the remainder of the purchase price and interest.
Note: The specifics are captured in the Conditions of Sale document that is signed at the SIE.
The potential purchaser should register as a bidder on arrival at the SIE. The registration process requires the submission of personal identification documents as well as payment of a deposit, determined by the sheriff.
Note: The Conditions of Sale document must be studied carefully.
A home loan can be approved within a day or, in certain instances, even a few hours. This is provided all supporting documents for your loan application have been submitted and the property valuation has been completed.
Yes, commission earners can qualify for a home loan. We require the past six months' commission statements.
Usually, a home loan is repaid over 20 years (240 months). However, the term may be extended to 25 years (300 months).
Our interest rates are personalised and depend primarily on your credit history and your deposit amount. We can only determine the interest rate after we’ve received your application form and completed our credit approval assessment.
The initiation fee covers the costs of processing your home loan application and is charged for all home loan applications (excluding readvances). We recommend that you pay the fee upfront when you sign your home loan documents at the attorney, or you may add the fee to the loan amount if we agree to it. The fee is charged in accordance with the National Credit Act (NCA).
The monthly service fee covers the costs of maintaining your home loan account and is included in your monthly home loan instalment. The fee is charged in accordance with the National Credit Act (NCA).
The maximum age is at Nedbank's discretion and will depend primarily on your credit history, amount of the deposit and financial circumstances when applying for the home loan.
The Nedbank Instant Bond Indicator gives an instant credit health and affordability check based on the information you provide us. This is merely an indication of the loan amount you may qualify for. You still have to apply for the loan and provide the necessary supporting documents. To use Nedbank's Instant Bond Indicator, click here.
There are a number of factors that are taken into consideration. Your credit history, the value of the property and, most importantly, your affordability. If you are thinking about buying a property, it's best to save for a deposit as you may not qualify for a 100% loan. Having a deposit means you need a smaller loan amount, which in turn reduces your monthly repayments and makes it easier for you to qualify for a home loan.
Your first home loan instalment will be deducted from your account in the month following your bond registration, on your preferred payment date.
Should you wish to change your payment date, you may contact our call center at any time on 0860 555 111.
Interest is calculated daily on the outstanding balance and then debited to the home loan account monthly.
Yes. There are no restrictions for making additional payments into the home loan account. However, there are additional fees charged for cash deposits. For a secure, convenient, and moneywise way to pay into your home loan we recommend setting up a debit order or making an EFT.
Our NedRevolve facility enables you to access any surplus funds that may accumulate should you pay more than the minimum instalment or make a lump sum payment into your home loan account.
To access Nedrevolve, you'll first need to have a bank account with Nedbank. Simply link your home loan account to your digital banking profile and you'll be able to do the following with Nedrevolve:
- Transfer funds from your bank account into your home loan whenever you have extra cash available. This will help you save on interest over time.
- Withdraw the additional funds from your home loan whenever you need some cash relief (at a minimum of R1,000 per withdrawal).
If you have financial difficulties, please contact us on 0860 553 573.
Buying fixed property (e.g. a home) is complex and involves the exchange of a large sum of money, the law requires an attorney or conveyancer to attend to the transfer of the property. The attorney fees for transferring property in South Africa are charged within the conveyancing fee guidelines prescribed by the Law Society of South Africa.
If finance is required to purchase a property, the bank appoints the registration attorney to have a mortgage bond registered against the property, as security for the loan, at the deeds office.
The transferring attorney is usually appointed by the seller and it is the buyer's responsibility to pay for the transfer fees (this is usually specified in the offer to purchase or sale agreement). The transferring attorney prepares the necessary transfer documents. Both attorneys will complete the relevant processes and documents required for the conveyancing process and will correspond with the bank, buyer, seller and the deeds office.
Finally, both attorneys simultaneously submit all relevant documents to the deeds office for examination (lodgement). The deeds office examines the documents and thereafter, if all is in order, puts the matter on preparation for registration (preparation stage). Once the deeds office is satisfied, the transaction is registered and the new buyer is now officially the owner and the bank is the bondholder (registration).
The transaction can take between two and three months depending on the conveyancing process, the deeds office, and any complications or delays.
No. The bond registration attorney is appointed by Nedbank. The transferring attorney is appointed by the seller and usually specified in the sale agreement.
Yes, it is always in your best interest to read everything before you sign. When signing at the attorneys you may ask for an explanation of anything you don't understand.
Costs are charged by an attorney when attending to any legal instruction received from the bank for the home loan. These costs are for the buyer's account and not the bank. Should the sale transaction for the property you are purchasing be withdrawn, the attorney may charge a fee for any work that they have already completed.
Please insist on an explanation, the attorney must explain these costs to you. The attorneys are guided by the Law Society with regard to the costs that they may charge.
The attorney will contact you during the bond registration process and notify you once the bond has been registered. Nedbank will also notify you once the registration process is completed.
No, you don't have to take out the bank's insurance. It is, however, a condition of the home loan agreement that you insure the property. You can insure your home with Nedbank or choose your own insurance provider. When completing the home loan application, please select your preferred insurance provider.
While the building is in progress, the builder or developer must have an all-risk insurance policy. Once the building is completed and the final disbursement has been made, you as the owner must then secure a homeowner's insurance cover.
You can contact the Nedbank Claims Department on 0860 333 111 should you need to make an insurance claim. If you are not insured through Nedbank Insurance, please contact your insurance company.
A Readvance gives you access to the portion of your home loan that you already paid off. This is a much quicker process than taking out a further loan on your bond as there is no conveyancing or attorney process involved.
A further loan allows you to register another loan in addition to your previous loan amount. Usually, a further loan is taken out when your property has increased in value. This type of loan requires the additional amount to be registered at the deeds office.
Your funds will be paid into your bank account as soon as your application has been approved and your restructured home loan agreement has been signed.
With DebiCheck you can securely approve a debit order payment before it goes off your account. By doing this, you’ll ensure that no fraudulent or unauthorised debit orders can go off your transactional account. DebiCheck has been endorsed by the South African Reserve Bank (SARB) and the Payment Association of South Africa (PASA).
This is usually initiated by an attorney or a Nedbank employee. You can authorise pending mandates at an ATM, on the Money app, via Online Banking, through the Nedbank Contact centre at 0860 555 111 (a Nedbank employee will initiate the mandate for you) or through our USSD channel. Dial *120*001# after having received a notification.
Once you've received a notification on your cellphone, accept the Approve-it message. If you do not respond to the message within two minutes, you will receive an SMS and will need to follow the authentication methods to approve the mandate.
A home loan client may only suspend and not cancel the mandate. To suspend the mandate, the home loan client should contact the bank where their transactional account is held.
The instalment is calculated on the outstanding balance and will continue to deduct any debits on the account, for example, service fees, interest and insurance or assurance premiums, until the bond has been cancelled at the Deeds Office.
The DebiCheck amount is higher than the amount on the debit order form as it caters for any increases in the interest rate, service fees and insurance or assurance premiums. It does not mean that the higher amount will be collected, the amount on the debit order form is the currently required bond instalment.
When the home loan instalment changes due to the interest rate, service fees or insurance or assurance premiums, the mandate is updated with the new instalment and you do not need to approve the amendment. If the home loan debit order amount changes and then exceeds the maximum collection amount on the mandate, the mandate will be amended, and you will need to approve the amendment request.
If you experience any problems with approving the mandate initiation request, you should contact the bank where the transactional account is held. This is the bank sending out the request for authentication, not Nedbank Home Loans. For assistance with the DebiCheck process, call us on 0860 555 111 or go to www.debicheck.co.za or https://www.nedbank.co.za/content/nedbank/desktop/gt/en/personal/loans/home-loans/DebiCheck.html.
Yes. You need to reauthenticate the DebiCheck as these are new agreements you are entering into.
No. Your first instalment is due only once your bond has been registered. You will be contacted after registration by one of our friendly and professional home loan consultants.
The full amount needs to be approved by all bondholders. However, the amounts can be split by completing additional debit order forms that are signed at the attorney.
Each account will be authenticated separately.
The DebiCheck still needs to be authenticated until the salary stop order has been set up after registration. This is also done to cater for when your SSO payment is no longer processed by your employer. The bank will then reinstate the debit order on the payment date in line with your authorised mandate.
If you live abroad, the attorney will inform the bank to waive the DebiCheck requirement. If you are temporarily out of the country, the transaction will be placed on hold until you return.
No, it only applies to individuals (including joint applicants). If the home loan applicant is an individual and they are paying their debit order from their business account, DebiCheck won’t apply.
DebiCheck will track your account for 10 days from the date you set for your debit order to go off, to see if there is enough money. If there is, your account will be debited. If the payment has still not been collected successfully after this tracking period, a double instalment will be collected the following month on the payment date in line with your authorised mandate.
Yes. The bank will try to identify the cash or transfer (EFT) transactions and if the payment is for the instalment amount missed, the bank will cancel the representment for the following month. If your payment is less than the instalment, a call centre agent will contact you to discuss and agree on payment of the shortfall on your instalment that was due and payable.
When the home loan DebiCheck mandate is changed in terms of the payment date or amount to be collected (if more than the mandate maximum amount limit), a DebiCheck amendment mandate request will be sent to the cellphone number on record with Nedbank for your approval. If your bank details change, Nedbank will initiate a new DebiCheck mandate to the cellphone number that it has on record for your approval. If no response is received Nedbank will register a mandate against your home loan account that does not require your approval.