Friday, 9 May 2008

ABSA Home Loans - No more 100% bonds! WELL ALMOST!

Well, if they're not trying to force property prices down in South Africa, I'll eat my shorts.

As of Monday 12th May 2008 ABSA home loans will only offer 100% loans to people purchasing properties under R800 000.00. Gone are the days of buying massive properties with no cash on hand.

As From Monday ABSA will place a cap on LTV(Loan to Value) going forward.

R0 – R800k = 100% bond
R801k – R2.7m = 95% bond
R2.7m – R4m = 85% bond.

This means that buying a property of R2.8million will require you to have a R420 000 deposit for your place.

Once again I put emphasis on the Sub-Prime Mortgage market in South Africa.

Other Articles:
Absa Home Loans - International Mortgages
Absa Home Loans - A Switched on Unit

1 comment:

Handy Saputra said...

Good resource. With the constant change in the home loan markets, good up to date resources are essential.