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Buying a home is an investement that will influence your finances for the rest of your life, and that's why it is so important that your home loan suits your needs - regardless of your age or lifestyle. At Standard Bank every application is considered on an individual basis, and their consultants are trained to give you the exact information you need.
No matter what your age, lifestyle or phase of life, Standard Bank can help you decide how your salary package can work best for you and which home loan product is most appropriate for you.
Some of the Standard Bank home loan products include JumpStart which covers all your costs if you are a first-time buyer. AccessBond which gives you access to your funds, and SecuraRate, which offers you various interest rate options, to mention only some of the products available to you.
Standard Bank repayment advice | Home ownership assistant schemes | Improving your lifestyle
Since monthly repayments on your loan should not exceed more than 30% of your total monthly household income, it is important to know what parameters Standard Bank uses when judging what comprises your "monthly income".
Standard Bank takes into account your gross monthly income before tax, pension and medical aid deductions along with your annual bonus and you can also add a percentage of the benefit of your company car – provided you have full use of the car.
Then they will also take into account any subsidy from your employer - 100% of your employer’s payment may be included as income commission – based on your average earnings over a year, provided this continues. In cases of a divorce, you can also include any maintenance your spouse pays you but you must provide the bank with a court order stating the maintenance amount and proof that payments are received on a regular basis if you want these to be included in your income calculation.
If you get permanent overtime payments, the bank could also include these along with any entertainment allowance you may receive.
Joint income may be taken into account where the property is registered in the names of all the people whose incomes are taken into account and either can sign as surety. They may also take into account income shared by a company, close corporation or trust as well as the income of a surety who will be paying your installments.
If you get income from permanent sources other than those mentioned above (including unearned income from investments, annuities and trusts) these may also be included - provided the income is of a permanent nature. And if you rent out another property and get an income from that, Standard Bank may also take this into account, provided that a copy of the lease agreement is presented to them.
If you think you can't afford a house yet, try asking your employer if they will help you buy your dream home since many companies offer a housing assistance scheme to people wishing to buy homes. There are many different types of home ownership assistance schemes and the arrangements differ from one employer to another.
In essence, however, there are two basic schemes: The first general arrangement is for your employer to subsidise a part of the interest payable on your housing loan – and that could reduce your monthly repayments substantially. Your employer’s contribution will be added to your monthly income as a housing subsidy item.
The second basic type of housing assistance is a scheme, which would allow you to borrow more than 80% of the price of the house you wish to buy. You employer, therefore, guarantees the amount greater than 80%. This means that your employer tells the bank to give you the loan to buy the house. Should you fail to pay and the bank has to sell your house, your employer will pay the bank the amount they have guaranteed.
If you’re already a homeowner, you can improve your lifestyle by using Standard Bank’s Access Bond facility. It allows you to use your mortgage as a flexible bank account (within the approved bond limit). This facility allows you to invest more money on a monthly basis, which will help to reduce monthly repayments or reduce the overall term of the bond as you see fit. You do however have immediate access to the additional funds if you need it - you would simply transfer the funds to your current account via an AutoPlus machine or via Internet Banking.
For more information regarding Standard Bank home loan products and services visit your nearest Standard Bank branch, call 0860 123 001 or visit standardbank.co.za and click through to Loans, Home Loans
