Everyone aspires to build their dream home. Let Absa Home Loans guide you through this process. Our building loan is designed to help you manage this process.

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Progress Payments

Progress payment are made for completed work in stages

Start to pay after 9 months

Repayment starts after nine (9) months of bond registration

Interim interest

Interest will be debited and capitalised from the date of first payment

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Manage my debt

Let us help you during these tough economic times, and make buying a home hassle free.

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How to get it and what you can expect

  • What you get

    Building process:

    The Absa Building Loan is a financing option that allows the customer to design and build his/her unique dream home. Both the vacant land (stand) and the structure can be financed on one loan.

    • An Absa assessor will visit the site prior to pay-out of each progress payment to inspect building work progress against the contract used to approve the loan.
    • As the building progresses, payments are made to the developer/builder by means of progress payments.
    • All progress payments must be authorised (signed) by the owner and signed off by our assessor. Thus the owner must be satisfied with the state and progress of the builder work on site before authorising such payments.
    • The final payment is only made once the work is completed in full.
    • Interest only payments for the first nine (9) months whilst building is underway.
    • After the loan is fully paid out, the loan becomes a normal Home Loan.
    • The Building loan converts to a normal home loan on final pay out, with access to facilities such as Flexi Reserve, Multiplan, Further Advance and ReAdvance.
    • Our range of interest rate options enable you to make the best deal based on your personal circumstances. You have a choice of variable rates or a fixed rate.
    • The ability to track your application online, from submission to registration. You may only apply for a fixed rate on a building loan once it is converted to a normal home loan.
    • Absa Home Owners Comprehensive Insurance to protect your home
    • Free Absa Will available to you on the acceptance of your Home Loan quote.
    • Get free e-Statements

    To find out more download the Building Loan document

  • How does it work

    • Search and get a vacant land to build your home
    • You may only use a builder who is registered with the National Home Builders Registration Council. This allows you to manage your building timeframes and costs
    • The repayment of the building loan will start after nine (9) months bond registration - regardless of whether the building is fully completed or not
    • The repayment is calculated on the outstanding balance at the time. Once the full loan amount is paid out, a new repayment calculation is done on the total amount outstanding including all interest, fees and payments made
    • You have nine (9) months to complete building operations
. During the building period, the bank pays funds to the developer/builder based on the work completed, against a "progress payment" requested by you
    • The final payment is made once the work has been completed in full and the municipality has issued an occupation certificate
    • Interest is charged based on outstanding balance and is capitalised monthly which means that interest starts accumulating as soon as the first payment has been made – this is called "interim interest"
    • The first payment could be the payment for land and you have the option to start repayments on the “interim interest” prior to final progress payment

    For more information, you can download our brochure here.

  • What you will need

    • A single or joint gross monthly household income of R20 000 or more.
    • A valid, bar-coded South African identity document or Passport if Non- South Africa (SA) resident.
    • An offer to purchase (if purchasing a property or refer to Building Loan Process if building).
    • Your latest salary advice (or income statement if self-employed).
    • A copy of provisional or approved building plans.
    • A copy of a detailed building tender and quotations.
    • Minimum specifications and schedule of finish times.
    • Waiver of Builders Lien.

Need more help?

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

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0860 111 007

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