Here are a selection of mortgage bond rates on offer from the various banks, with a breakdown of what they offer and, equally importantly, what they require from you.
ABSA BANK including ALLIED, TRUST, UNITED and VOLKSKAS
* Minimum and maximum variable interest rates:
18,25 percent to 19,25 percent.
* Qualification for lower rate:
Depending on bank services used and profile of client. Four variable rates with the the top package cheque client qualifying for the best rate.
* Fixed rates:
18,25 percent for one year, 17,5 percent for two years.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): TrustBank and Volkskas only offer the facility to deposit surplus funds but not to draw excess funds electronically. Withdrawals can only be done on application at a branch. In both cases the product is called the Home Loan Savings Option. Allied and United provide access to the surplus funds. Allied's product is called Tax Efficient Home Loan Option and United's product is called Equity Release Bond. There are no additional charges.
* Maximum size bond as a percentage of the purchase price:
100 percent of property valuation (excludes costs and transfer duties).
* Maximum monthly repayments as percentage of income:
30 percent of single or joint income.
* Minimum and maximum repayment periods:
Normally minimum period is 15 years but there is no restriction on early redemption. Maximum period is 30 years.
* Early redemption costs:
Nil.
* Initial bond and other costs charged by ABSA:
Initiation fee of R175. Administration fee of R5 a month. Valuation fee of 0,2 percent for loans under R500 000. Branches have discretion to waive the fee. Charge of R5 a month for safe keeping of title deed document.
BOARD OF EXECUTORS
* Minimum and maximum variable interest rates:
18 percent on minimum loan value of R200 000; minimum net asset value of R300 000; and property value R250 000.
* Fixed rates:
17,5 percent.
* Period of fixed rates:
One or two years to existing account holders.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes, called BOE Home Loan. No additional costs.
* Maximum size bond as a percentage of the purchase price:
80 percent up to R400 000; 75 percent from R400 001 to R1 million; and 70 percent from R1 million.
* Maximum monthly repayments as percentage of income:
Should not exceed 50 percent of after tax income.
* Minimum and maximum repayment periods:
One to maximum of 20 years.
Early redemption costs:
Yes, one percent in first year only.
* Initial bond and other costs charged by BOE:
R6,70 debit order fee.
BOLAND BANK
* Minimum and maximum variable interest rates:
18,25 percent to 19,25 percent.
* Qualification for lower rate:
Based on joint annual income, use of more than one bank product and assets.
* Fixed rates:
18,5 percent fixed for 24 months or 18,75 percent fixed for 36 months (both apply from September 1). Rates may vary for new clients depending on market rates at time of entry.
* Option of variable balance mortgage bond:
(ie which can be used as a savings account): Yes, called Superieur Home Loan. Available to select clients at no additional costs.
* Maximum size bond as a percentage of the purchase price:
Depending on the client's financial status, security position and cashflow. Costs may be capitalised into bonds. As a general guideline 90 percent bonds are offered, but up to 100 percent, including costs, are available to a client with sufficient assets and cashflow.
* Maximum monthly repayments as percentage of income:
30 percent of joint monthly income.
* Minimum and maximum repayment periods:
Up to 30 years but 20 years ideal.
* Early redemption costs:
Up to three months of interest allowed under Usury Act but may be waived at discretion of branch manager.
* Initial bond and other costs charged by Boland:
Valuation fee from R250 to a maximum of R650 on residential home loans. Initial administration fee of R175 and monthly administration fee of R5.
CAPE OF GOOD HOPE BANK
* Minimum and maximum variable interest rates:
18,25 percent to 19,25 percent.
* Qualification for lower rate:
R8 000 a month minimum gross income (single) or R10 000 (joint).
* Fixed rates:
Yes, 17,45 percent.
* Period of fixed rates:
18 to 24 months.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes. No additional cost.
* Maximum size bond as a percentage of the purchase price:
100 percent, excluding transfer and legal costs.
* Maximum monthly repayments as percentage of income:
30 percent of gross monthly income.
* Minimum and maximum repayment periods:
Zero to 25 years.
* Early redemption costs:
One percent if bond cancelled in first year, thereafter subject to one month notice period.
* Initial bond and other costs charged by Cape of Good Hope:
Valuation fee dependent on value of property (maximum R550), R175 initiation fee and R5 administrative fee.
FIRST NATIONAL BANK
* Minimum and maximum variable interest rates:
18,25 percent to 21,75 percent.
* Qualification for lower rate:
Depending on type of account, income, value of property and bank products used, with the higher the income the lower the rate.
* Fixed/Capped rates:
Three products.
Product One:
A fixed rate of 1,75 percent below the variable rate (for which an individual may apply) with a minimum of 17,50 percent. Should the home loan variable rate move below or above the threshold, the rate will remain the same for the chosen period.
Product Two:
A capped rate of 1,75 percent below the variable rate (for which an individual may apply) with a minimum of 17,50 percent. If rates increase the rate will remain capped but if interest rates decrease the rate will decrease accordingly.
However a "premium" of 70 cents for every R1 000 is levied. If the rate drops the levy remains (eg if the variable rate drops by three percent to 16,25 percent the commensurate fixed rate would be 16,25 percent plus the premium for the chosen period.
Product Three:
For lower income earners only a 10-year fixed rate option (household joint gross monthly income of less than R3 500). Loans up to R25 000 fixed rate of 22,5 percent; R25 001 to R50 000 fixed rate of 21,25 percent; R50 001 to R65 000 fixed rate of 20 percent.
* Period of fixed/capped rates:
One or two years for products one and two and 10 years for product three.
* Option of variable balance mortgage bond
(facility to deposit and withdraw excess funds): Yes. Called Savings Bond. No additional costs.
* Maximum size bond as a percentage of the property valuation:
Varies between 80 percent and 105 percent (including bond and legal costs) depending on income and asset profiles of applicants.
* Maximum monthly repayments as percentage of income:
Depending on financial standing of the applicant a maximum of 30 percent of joint or individual gross monthly income.
* Minimum and maximum repayment periods:
Up to 30 years. No minimum.
* Early redemption costs:
Nil.
* Initial bond and other costs charged by FNB:
Initiation fee of R175. Property assessment fee: on completed homes R100 where assessed value is less than R50 000; or 0,2 percent of value over R50 000 (with a maximum of R850).
Building loans: R250 where assessed value of the stand and building improvements do not exceed R50 000; or 0,5 percent when the assessed value exceeds R50 000 with a maximum of R1 250.
INVESTEC BANK
* Minimum and maximum variable interest rates:
18 percent to 19,25 percent.
* Qualification for lower rate:
Selected clients such as professionals and high net worth individuals.
* Fixed rates:
17,5 percent or 17 percent.
* Period of fixed rates:
One or two years.
* "Insured" capped rates:
17 percent with a premium of R1 for every R1 000 and 17,5 percent with 70 cents for every R1 000
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes. No additional cost.
* Maximum size bond as a percentage of the purchase price:
As the bank is not an asset but an income lender, 100 percent of value plus legal costs would be funded (transfer costs funded separately).
* Maximum monthly repayments as percentage of income:
Based on total bond being 200 percent of gross annual income.
* Minimum and maximum repayment periods:
12 months minimum, 20 years maximum.
* Early redemption costs:
Yes. 90 days penalty (if it falls within the Usury Act) interest at discretion of the bank. Loans outside Usury Act generally 90 days interest. Both at discretion of the bank.
* Initial bond and other costs charged by Investec:
A valuation fee and an administration fee charged upfront and based on the value of the property and the amount of the loan. There are no ongoing fees.
MERCANTILE LISBON
* Minimum and maximum variable interest rates:
18,25 percent to 19,25 percent.
* Qualification for lower rate:
Depends on relationship with bank and period they have been customers.
* Fixed rates:
No fixed rate options.
* Option of variable balance mortgage bond:
Yes, called Pronto Bond. No additional costs.
* Maximum size bond as a percentage of the purchase price:
90 percent bond up to R200 000 and 80 percent over R200 000. This excludes transfer and legal costs.
* Maximum monthly repayments as percentage of income:
30 percent.
* Minimum and maximum repayment periods:
No minimum, maximum 20 years.
* Early redemption costs:
Yes, one month's interest if bond is paid off in the first 12 months. No penalty thereafter.
* Initial bond and other costs charged by Mercantile Lisbon
: Documentation fee of R150 and administration fee of R5 a month.
NBS BANK
* Minimum and maximum variable interest rates:
18 percent to 19,25 percent.
* Qualification for lower rate:
Dependent on property offered as security, the moral risk of the borrower and the loan amount.
* Fixed rates:
18,5 percent (currently under review) fixed for one year. 17,5 percent fixed for two years.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes, called Actionbond. No additional costs. Can be accessed through ATM machines.
* Maximum size bond as a percentage of the purchase price:
Up to100 percent, excludes transfer and legal costs.
* Maximum monthly repayments as percentage of income:
Up to 30 percent of monthly income.
* Minimum and maximum repayment periods:
Zero up to 30 years.
* Early redemption costs:
Nil.
* Initial bond and other costs charged by NBS:
An initiation fee of R175; a monthly administration fee of R5 and annual fee of R30 if title deeds are kept by NBS Bank.
NEDBANK
* Minimum and maximum variable interest rates:
18,25 percent to 19,25 percent.
* Qualification for lower rate:
Based on income and/or personal assets and relationship with bank.
* Fixed rates:
17,5 percent.
* Period of fixed rates:
One or two years.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes, called NedRevolve. No additional costs.
* Maximum size bond as a percentage of the purchase price:
100 percent, excluding transfer and legal costs.
* Maximum monthly repayments as percentage of income:
Income of less than R40 000 a year, limit of 30 percent on single income and 25 percent combined with spouse. Income of more than R40 000 a year, 30 percent of individual's income and 30 percent of combined income.
* Minimum and maximum repayment periods:
Up to 30 years.
* Early redemption costs:
Nil.
* Bond and other costs charged by Nedbank:
Initiation fee of R175. Property assessment fees: On ordinary loans 0,2 percent of value with a maximum of R850.
Building loans 0,5 percent of value with a maximum of R1 250.
PERMANENT BANK
* Minimum and maximum variable interest rates:
18,25 percent to 20,5 percent.
* Qualification for lower rate:
Based on income and/or personal assets and relationship with bank.
* Fixed rates:
17,5 percent.
* Period of fixed rates:
One or two years.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes, called RevestBond. No additional costs.
* Maximum size bond as a percentage of the purchase price:
100 percent, excluding transfer and legal costs.
* Maximum monthly repayments as percentage of income:
Income of less than R40 000 a year limit of 30 percent on single income and 25 percent combined with spouse. Income of more than R40 000 a year 30 percent of individual's income and 30 percent of combined income.
* Minimum and maximum repayment periods:
Up to 30 years.
* Early redemption costs:
Nil.
* Initial bond and other costs charged by Permanent:
Initiation fee of R175. Property assessment fees: on ordinary loans 0,2 percent of value of property, with a maximum of R850. Building loans 0,5 percent of value of property, with a maximum of R1 250.
SAAMBOU BANK
* Minimum and maximum variable interest rates:
18 percent to 19,25 percent.
* Qualification for lower rate:
Interest rates are negotiated on an individual basis. The client's salary, product portfolio, track record, mortgage bond size and valuation of property are taken into consideration.
* Fixed rates:
17,5 percent.
* Period of fixed rates:
One or two years.
* Option of variable balance mortgage bond
(ie which can be used as a savings account): Yes, called Availabond. There are no additional costs.
* Maximum size bond as a percentage of the purchase price:
100 percent with transfer and legal costs included, depending on the value of the property.
* Maximum monthly repayments as percentage of income:
Up to 30 percent of total household income is acceptable.
* Minimum and maximum repayment periods:
Minimum six months and maximum of 30 years.
* Early redemption costs:
No, as long as new bond is taken up with Saambou.
* Initial bond and other costs charged by Saambou
: Initiation fee of R175. Valuation fee calculated on value of property and monthly administration fee of R5.
STANDARD BANK
* Minimum and maximum variable interest rates:
Traditional market: 19,25percent on incomes between R3 500 and R4 000 a month; 19 percent on incomes between R4 000 to R6 000; 18,75 on incomes between R6 000 and R12 500; and 18,25 percent on incomes of R12 500 and above.
* Mass/low income housing:
Starting at 19,75 percent on loans between R50 000 and R65 000 with a graduated rate up to 21,5 percent for loans up to R25 000.
* Qualification for lower rate:
Rate concessions are given to customers who qualify for one of the bank's special banking packages including PrestigePlan, Pro-Elite, Med-Elite and AchieverPlan. These rate concessions vary from one percent to 0,5 percent below the ruling rate.
* Capped/Fixed rates:
Option one
: Straight fixed 17,5 percent.
Option two:
Capped rate linked to variable rate. For a premium of 70 cents in every R1 000 or part thereof customers can choose to cap their rate at two percent below their prevailing rate with a maximum rate of 17,5 percent. When the underlying variable rate on the contract falls below 17,5 percent so will the capped rate. However, the customer continues to pay the premium.
* Period of capped rates:
One or two years.
* Option of variable balance mortgage bond (ie which can be used as a savings account):
Yes, called AccessBond which allows an investment of surplus funds and three withdrawals a month in multiples of R1 000
* Maximum size bond as a percentage of the purchase price:
100 percent of the bank's assessed value of the security. If the bank's assessed value is greater than the purchase price, legal costs for transfer and bond registration may be added. The bank will not absorb transfer duty.
* Maximum monthly repayments as percentage of income:
30 percent for an income above R3 500. Below R3 5 000 25 percent of income.
* Minimum and maximum repayment periods:
No minimum. The maximum is 30 years but there is a maximum of 20 years for loans of less than R15 000.
* Early redemption costs:
90 days written notice of early redemption. Notice may not be given in first 90 days of loan. If notice is not given the bank may charge the additional 90 days interest but this provision will only be implemented on fixed rate loans.
* Initial bond and other costs charged by Standard:
Initiation fee of R175 as well as a security assessment fee which carries on the value of the property. For a new loan this is R100 for the first R59 000 plus 0,17 percent thereafter with a maximum of R850.
For a building loan R250 for the first R100 000 plus 0,25 percent thereafter with a maximum of R1 250.