What does my monthly instalment include?

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.