Nedbank now offering 100% home loans

Getting into the property market has been a little difficult lately with banks requiring substantial deposits when buying a property. I know that FNB has been an exception in recent times by offering 100% bonds on their QuickSell properties but other than that, 10 to 20% deposits have been the norm. Well, there’s some good news. Standard Bank and Absa have reduced their required deposits and now Nedbank is offering 100% home loans.

Nedbank announced this week that clients would not have to put down a cash deposit of 10 to 20%. Instead, Nedbank is now accepting 0 to 10% cash deposits. That’s a big relief. Clive van Horen, head of Secured Lending, says: ‘In general, though, we continue to believe that putting down a 5 to 10% deposit is good practice for both the client and the bank, and therefore we will continue to encourage clients to do likewise.’

One hundred per-cent home loans will only be granted to lower risk clients. This applies to both existing Nedbank and new clients. I’d say that’s pretty good news. What do you think?

For first-time property buyers and anyone looking for good South African property books I recommend these two books:

• Making Money Out Of Property In South Africa by Jason Lee
• Fast-Forward Your Retirement Through Property by Jason Lee

There are lots of property books out there but few provide for the current South African property market which these do. Jason Lee provides valuable advice on finding and securing the best property deals and maximising your investment.

You can read more about Nedbank’s good news on home loans here.

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