You can pay a deposit lump sum towards an overall cost of a home or land you are buying. A deposit is a big advantage and can benefit you by paying back (the capital amount) less and therefore benefit from paying less interest (actual amount). Start saving towards your deposit and own a home.

Start saving now
Start saving now

If you do not have savings that can go toward
a deposit, start saving now and benefit from
paying less.

Start saving now
Save more on interest

You can save more and pay less interest if you
put a deposit when buying your first house.

Start saving now
Own a home

You can quickly own a home when you put a
large the deposit towards your home loan
when buying your home.

How to get it and what you can expect

What are benefits of a deposit?
  • You can obtain a better interest rate from the bank with a larger deposit.
  • A deposit ensures a lower repayment value per month
  • The larger the deposit the closer you are to owning your home
How does it work?

Please note that the examples below are for illustration purposes only.

Table 1 shows the benefit of a lower repayment from a deposit:

Description

With Deposit

Without deposit

Purchase price

R 550 000.00

R 550 000.00

Deposit

R 55 000.00

R 0.00

Loan required

R 495 000.00

550 000.00

Loan to value

90%

100%

Term

240

240

Rate

9.95%

9.95%

Repayment

R 4 760.47

R 5 289.41

Initial saving over term for the loan with a deposit:

 R 126 945.89

  •  With a deposit of R55 000 you could potentially save about R126, 945.89 over the term of loan (240 months).
  • Remember the higher your loan to value (i.e. the percentage of the value of the house you need to pay off) the higher your interest rate.
  • Customers with lower Loan to Values also benefit from a lower interest rate; and this could potentially improve your savings as illustrated in the table below.

In addition to the savings illustrated above, Absa will give you a better price. See table 2 below:

Description

With Deposit

Without deposit

Purchase price

R 550 000.00

R 550 000.00

Deposit

R 55 000.00

R 0.00

Loan required

R 495 000.00

550 000.00

Loan to value

90%

100%

Term

240

240

Rate

9.65%

9.95%

Repayment

R 4 662.64

R 5 289.41

Your final saving including the improved pricing:

                                                     R 150 424.44

contact

Need more help?

Let one of our consultants help you get the best home loan for your needs.

Call us on:

0860 111 007

E-mail us at:

home@absa.co.za

Visit your nearest branch