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

    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

    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

Email us at:

home@absa.co.za

Visit your nearest branch