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Home Loan
A common mistake new homeowners make when taking up a home loan online is failing to fully understand the dynamics of the interest of the loan.
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Properties of this loan
- Personal loans up to R300.000
- Term 12 - 72 months
Loan requirements
- SA ID number
- Proof of residence not older than 3 months
- 1 month's payslip
- Last 3 months’ bank statements, if you don't bank with us
About company
More information about the company Standard Bank
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Properties of this loan
- Online loans up to R300.000
- Term 1 - 60 months
Loan requirements
- You must be between the ages of 18 and 64
- Be a permanent SA resident
- Be permanently employed or self-employed
- Your salary must be paid directly into your bank account
About company
More information about the company First National Bank
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Properties of this loan
- Online loans up to R5.000
- Term 1 - 6 months
- Same-day cash
Loan requirements
- The borrower’s age should be in the range of 18 to 65 years
- Users must pass a credit check
- Requires a current email address
- Provision of current phone number and Debit card
- Recent pay slips and Proof of address
About company
More information about the company Cobol Finance
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Properties of this loan
- Online loans up to R50.000
- Term 6 - 24 months
Loan requirements
- A valid SA ID
- 3 latest payslips or 3 latest bank statements
- Must be permanently employed and earning a monthly salary
- A valid cell phone number
- A valid SA bank account
- Must be 18 years or older
About company
More information about the company Capfin SA (Pty) Ltd
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Properties of this loan
- Professional financial advice and tips to improve your score
- Complimentary loan assist service of up to R150,000 cash
Loan requirements
- Be 18 years or older
- Have a valid SA ID or Drivers License
- Have a bank account
About company
More information about the company Credit Gain Services (Pty)
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Properties of this loan
- Online loans up to R350.000
- Term 1 day - 84 months
Loan requirements
- To earn a regular monthly income of at least R2 000 per month
- To have a cheque account into which your monthly income is paid
- To be 18 years or older
About company
More information about the company Absa Bank Ltd.
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Properties of this loan
- Online loans up to R2.000
- Term 7 - 25 days
- Fast online application
Loan requirements
- Have and Identity Document of the Republic of South Africa
- Be over 18 years old
About company
More information about the company Kwalaflo (Pty) Ltd
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Properties of this loan
- Online loans up to R9.000
- Term 4 - 65 days
Loan requirements
- The borrower’s age should be in the range of 18 to 65 years
- Users must pass a credit check
- Requires a current email address
- Provision of current phone number and Debit card
- Recent pay slips and Proof of address
About company
More information about the company Binixo Corporation
Fast information
Properties of this loan
- Online loans up to R2.500
- Term 30 - 60 days
- Online application
Loan requirements
- Age – 18 Years or Above
- South African Citizen
- Must have a Bank Account
- Have a Permanent Employment
About company
More information about the company Fak'Imali Cash Loans Trading as Matotololo Group (Pty) Ltd
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Properties of this loan
- Online loans up to R150.000
- Term 2 - 6 years
- Fast application, instant approval.
Loan requirements
- A good credit record
- A regular monthly income of at least R5 000
- The details of your bank account into which your salary is paid
About company
More information about the company FirstRand Bank Limited
Fast information
Properties of this loan
- Online loans up to R150.000
- Term 1 - 60 months
Loan requirements
- You must be between the ages of 18 and more
- Be the SA resident
- Your salary must be paid directly into your bank account
About company
More information about the company SA Home Loans (Pty) Ltd.
Fast information
Properties of this loan
- Online loans up to R150.000
- Term 1 - 6 years
- Fast application
Loan requirements
- You need to be a South African citizen and above 18 years of age
- You also need to be employed and have a valid bank account
About company
More information about the company Hippo Comparative Services (Pty) Ltd
Fast information
Properties of this loan
- Online loans up to R250.000
- Term 1 – 84 months
- Fast online application
Loan requirements
- The minimum age to use our service is 18
- Must be a current resident of South Africa
- Need an active South African bank account to allow the money to be transferred to you
- Have to be a current resident of South Africa
About company
More information about the company Virgin Money South Africa (Proprietary) Limited
Fast information
Properties of this loan
- Online loans up to R120.000
- Term 1 - 48 months
- Fast application
Loan requirements
- You need to be a South African citizen and above 18 years of age
- Ability to go to the branch
- You also need to be employed and have a valid bank account
About company
More information about the company Real People Home Improvement Finance, a division of Opco 365 PTY LTD
Fast information
Properties of this loan
- Personal loans up to R300.000
- Term 12 - 72 months
Loan requirements
- SA ID number
- Proof of residence not older than 3 months
- 1 month's payslip
About company
More information about the company Imperial Credit Bank
Fast information
Properties of this loan
- Online loans up to R150.000
- Term 1 - 60 months
Loan requirements
- You must be between the ages of 18 and more
- Be the SA resident
- Your salary must be paid directly into your bank account
About company
More information about the company ooba (Pty) Ltd.
Generally, there are three types of home loans in South Africa and each type is primarily characterized by the dynamics of the interest levied on the mortgage. As far as home loan interest is concerned, you can use a home loan calculator to determine how much interest you are expected to pay. However, where or not you can reduce the interest on the loan depends on the type of home loan you take. Keep reading to learn more.
Three Types of Home Loans in South Africa
1. Variable Interest Home Loan
This is the most common type of home loan in South Africa and like the name suggests, the interest on the loan can vary over the life of the mortgage. Hence, the monthly payments on the loan can go up or down along with the market interest rate.
2. Fixed Rate Home Loan
This type of home loan is the opposite of a variable interest loan. In this case, the interest rate on the loan remains the same (unchanged) over the duration of repayment.
3. Capped Home Loan
This type of home loan is similar to a variable home loan. However, there is a cap that restricts how high the interest rate can rise. In simple terms, the loan has a maximum interest limit which can’t be exceeded under any conditions irrespective of how aggressively the interest rates fluctuate over the life of the loan.
Irrespective of the home loan you take up, there are four effective ways to reduce your interest.
How to Reduce Home Loan Interest
Improve Your Credit Score
Your credit score greatly affects your lending capability as well as the minimum amount of interest you are expected to pay on a loan. The better your credit score, the lower the interest rates the lender will allow. Hence, you should strive to improve your credit score before taking on a home loan so as to enjoy minimal interest rates.
Make a Large Deposit
If you can manage to make a substantial down payment towards the cost of a home, it will minimize the amount you need to borrow against the home. As a result, you will take up a smaller home loan meaning the interest on the loan will be less than what you could have paid had you borrowed the entire sum for the home. Plus, you get to minimize the total payments you make as well as the lifespan of the loan which further reduces interest.
Pay Extra When You Can
The longer a loan lasts the more you pay in overall interest. If you occasionally come into some extra money, you can put it towards the repayment of the home loan. Hence, if you make extra payments regularly, you quickly yet gradually reduce the balance owed which translates to reduced interest.
Use Home Loan Calculators
Every reputable lender has an online home loan calculator. You can use these calculators to compare the best home loan deals online, enabling you to pay the least possible interest over the life of the home loan.
Lincoln Ndirangu(LinkedIn)Lincoln Ndirangu is a professional freelance web copywriter based in Nairobi, Kenya. For over 7 years, writing for the web and engaging the online audience has been primary focus and passion.More information...