Jun 11
30
Absa home loans can help you with the financing of your dream home. Looking for a fixed or variable rate home loan? Fifteen or twenty years? Absa has home loans to suit each and every need.
It is important to find home loans that meet your needs. How can you do that? By consulting your bond originator or home loan consultant. And don’t forget to take a peek at what other banks bring to the table too.
Before you get to your bank
Which loan types are there?
1. Fixed Rate Absa Home Loans
A home loan for buyers who need assurance. This is where you borrow money for your home loan at a certain rate. And that does not change if interest rates go up or down.
Advantage? Your monthly payment will not change. Moreover, the financial burden of the loan is probably even less, because your income rises with time. Disadvantage? The total amount you repay can be higher than a variable rate loan especially in interest rates go down.
2. Variable Rate Absa Home Loans
Your bank can offer you home loans with lower interest rates than the fixed rate option. Your repayments can rise or fall – depending on interest rate fluctuations. You decide the review period. The margin of increase is limited by law.
But which option should you choose?
Today interest rates are low. Loans with variable rates are therefore very popular. But the Reserve Bank is likely to raise interest rates again.
If you can lock in a low interest rates you will save money if interest rates go up. However should you opt for a fixed rate Absa home loan and interest rates go down you will pay more on your home loan than someone with a variable rate home loan.
Consult your bond originator or Absa home loan consultant for more information before you make a decision.
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