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Break new ground on a brighter future for you and your family with a Building Loan from Absa.
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Here’s what you get

Financing of up to 100%

Financing of up to 100%

Get a Home Loan of up to 100% to build your dream home.

Draw up your plans

Construction period

You’ll have nine months to complete your building operations.

Exclusive Absa offers

Exclusive Absa offers

We give you the choice to pay interim interest during the building process.

Progress payments

Progress payments

We’ll pay in six intervals, as your building progresses.

What you need to know

  • Before you break ground

    Planning is everything when building. Our step-by-step guide outlines what you need to do:
     
    1. Decide how much you can spend: Determine your maximum amount using our calculator.
    2. Find your land: The kind of land you choose will affect your building costs and more. Browse Private Property’s list of vacant land.
    3. Draw up building plans: Find a draftsman or architect to work with you, to help design and make your dream house a reality.
    4. Find the right builder: Your builder plays the most important role in your project. Make sure that they are registered with the National Home Builders Registration Council (NHBRC). We advise you to not sign a contract with the requirement of upfront payments, to pay a builder for work that has not yet been completed or to pay deposits for materials that have not yet been provided and installed.
    5. Gather all your documents: There are several documents you’ll need to apply for a Building Loan. Find the details here.
    6. Apply for your loan: Ready to start building? Call us on 0860 111 007 or apply online now.
     

  • What you get

    • Finance for both the vacant land and the building in one loan.
    • The option to extend or renovate your home with a Further Advance Building Loan. 
    • Progress payments made to you or your builder based on work completed. 
    • Loan repayments start nine months after bond registration, even if the building isn’t done yet. 
    • Building Loan finance is available for residential properties only. 
    • Fixed interest rates are not available during the building process. 
    • Your FlexiReserve facility will not be available during the building process. 

  • How it works

    • You have nine months to complete the building process. 
    • Up to six progress payments are made to you or your builder as construction moves forward. 
    • You must authorise each payment, so it’s important to stay up to date with the work on site and ensure that you are comfortable with the progress made. 
    • The final payment is only made once the occupancy certificate and insurance confirmation are received. 
    • The bank assessor will inspect the building to ensure that there is sufficient security for the funds requested. 
    • You’ll need to pay for the first part of the building work before the bank starts releasing funds. Therefore, you must ensure that you have enough money to finance the first part of the building work. 
    • Monthly interim interest is charged to your account from the date of the first progress payment. 
    • If you don’t pay the interim interest each month, your final payment will be reduced, which could result in you not having sufficient funds to complete your home. 
    • Paying your interim interest monthly ensures that you can access the full loan amount. 

  • What you need to apply

    Applying for a Building Loan

    • Which documents must I submit? 
      • NHBRC Builders Registration Certificate. 
      • Signed Waiver of Builder’s Lien (Absa form 1295BX English or Absa form 1295BX Afrikaans).  
      • Schedule of Tender and Finishes. 
      • Minimum Specifications (Absa form 1284EX English or Absa form 1284EX Afrikaans). 
      • Builders All Risk Insurance policy document. 
      • Plans that are submitted for approval (working drawings) with measurements, or municipal-approved plan. 
      • Fully completed and signed building contract. 

     

    Please note the NHBRC documents can be obtained from the developer/builder. 

     

    • Where do I get these documents? 
      • The Waiver of Builder’s Lien, Schedule of Finishes and Minimum Specifications can be obtained from any Absa branch for completion by you or the builder. 
      • The provisional municipal-approved plan with measurements (also referred to as the sketch plan) and/or working drawings can be obtained from an architect or the developer/builder. 
    • Approval of the Building Loan
      The following documents must be submitted before registration or first payment:
      • NHBRC Unit Enrolment Certificate
      • Municipal-approved plan
      • Specimen signatures, Resolutions for Legal Entities and Power of Attorney where applicable (normally provided by the bond attorneys)
      • Builder’s All-risk Insurance
      • Certificates as specified by the valuers (Engineer’s certificate for the foundation/superstructure/and roof at different stages of work completed)
      • Fully-completed and signed building contract.
         
    • The following document must be submitted at different stages of building:
      • Working drawings with all measurements

    • You must submit working drawings of your municipal-approved plans when you apply for your Building Loan and approved plans before your first payment.

     

     

     

Find out what your ideal home could cost 

Use our quick and easy calculator to get an estimate of your monthly home loan repayment. 

Calculate now

Home loans caluclator

Frequently asked questions

  • Can Absa recommend builders or give building advice? 

    No, we can’t recommend builders or give building advice. However, we highlight that any builder you approach must be registered with the NHBRC. 

  • Why is it important for a builder to have an NHBRC registration certificate? 

    The NHBRC registration certificate proves that your builder and the home they are building are registered with the National Home Builders Registration Council. This council ensures that your property is built to standard, handles complaints and non-compliance, and protects your home against major structural defects for five years after you have moved in. Remember, Absa cannot act as mediator between you and your builder/contractor. 

  • What is a bill of quantities, and why do I need it? 

    A bill of quantities outlines the different phases of the building process and the associated costs. Each phase must be signed off by a quantity surveyor before you move on to the next phase. The document helps to ensure accurate budgeting and smooth project management. 

  • How do I apply for a Building Loan? 

    To apply for a Building Loan, make sure you have all the required documents. Once you’re ready, call us on 0860 111 007, apply online or visit your nearest branch. We’ll then guide you through the process to help make your dream home a reality. 

Read more related to this topic

Find out everything you need to know about owning a home, right here.

Must-have documents

Here’s what documents you’ll need during the building application process.                                                                        

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Protect your home while building

Find the best NHBRC-registered builder and insure your property to get the most out of it.                       

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Build or buy?

It’s an investment for your future. We’ll help you make the best decision.                                       

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Building your own home?

Find your ideal piece of land, apply for your Building Loan and start the process with us.

See more

Need more help?

Access our self-service tools.

 

Contact us

Call: 0860 111 007

International: +27 11 501 5048

Email: propertyhub@absa.co.za