Want to buy land on or do you already have land to build on? We can help you build your dream home one brick at a time with our building loan. We can also assist with a Further Advance Building Loan if you want to renovate or make alteration to your existing home. 

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Progress Payments

Progress payments 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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Financial planning consultation

We provide a financial planning consultation with a qualified adviser.

How to get it and what you can expect

  • What you get

    Our building loan allows you to design and build your unique home. With our building loan you pay for completed work in stages. Your repayments only start nine months after registration, whether the building is completed or not.

    • Finance both the vacant land and your dream home on one loan.
    • Repayments only start 9 months after registration.
    • An valuer appointed by Absa will inspect the building work progress against the contract used to approve the loan prior to each progress payment.
    • After the loan is fully paid out, the loan amount becomes a normal home loan giving you access to facilities such as FlexiReserve, Multiplan, Further Advance and ReAdvance.
    • Structure your home loan to suit your needs with variable rates or a fixed rate option.
    • Track your application online, from submission to registration.
    • Apply for Absa Homeowners Comprehensive Insurance to protect your home.
    • Get free eStatements.
    • Absa provides a financial planning consultation with a qualified adviser, to consider the following for customers: a Will, a Life Policy, Packaged Insurance for your motor and home, and Retirement Planning. Send an email to virtualadviser@absa.co.za and an adviser will call the customer back
  • How does it work

    • Search and get a vacant land to build your home.
    • Use a builder who is registered with the National Home Builders Registration Council. 
    • You have 9 months to complete building operations. During the building period, the bank pays funds to the developer based on the work completed and against a "progress payment" requested by you.
    • We normally allow for 6 progress payments during the 9 months. The final payment is made only once the work is completed in full and an occupation certificate issued by the municipality is received by Absa Home Loans.
    • Interest accrues on your loan from the day of the first payment made; this is known as interim interest. This interim interest is debited to your building loan for the duration of the building period. It is recommended that you make interim payments to cover this interest.
    • You only start repaying your loan 9 months after registration – regardless of whether the house 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).
    • Interest is charged on the outstanding balance and capitalised from the date of first payment.
    • Further Advance Building Loan follows the same process even though it is for an extension to your existing home.

    For more information, read our Building Loan Brochure. 

  • What to bring when you apply

    • A single or joint gross monthly household income of R23 300 or more.
    • A valid, bar-coded South African ID or passport if non-South Africa 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).
    • Provide consent for three (3) months’ bank statements if banking with First National Bank (FNB), Nedbank or Standard Bank, otherwise provide three (3) months’ bank statements
    • NHBRC Builders Registration Certificate.
    • A signed Waiver of Builders Lien (Absa form 1295BX).
    • Schedule of tender and finishes.
    • Minimum specifications (Absa form 1284EX).
    • Plans that are submitted for approval (working drawings) with measurements, or 
    • Municipal-approved plan.
    • Fully completed and signed building contract.
    • Builders all-risk insurance. 

Need more help?

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

Call us on:

0860 111 007

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