What documents do I need to apply for a building loan?

To apply for a building loan, you will need a building contract, bill of quantities, tender and schedule of finishes, building plans, and a registered builder. Additional documents such as Absa’s minimum requirements and a waiver of builder’s lien may also be required.

What is a building contract?

A building contract is a document provided by your builder that outlines the agreement between you and the builder. It details the scope of work, project timelines, and a full breakdown of costs required to complete the construction.

What is a bill of quantities?

A bill of quantities outlines the different stages of the building process and the associated costs. It must be signed off by a quantity surveyor before each stage of construction can proceed.

What is included in the tender and schedule of finishes?

The tender and schedule of finishes is a detailed list created by your builder that includes all materials, quantities, and specifications required for the build. It must be approved by a quantity surveyor before construction begins.

Do my building plans need to be approved before applying?

Building plans, provided by your architect or builder, show what your home will look like once completed. These plans do not need to be approved immediately but will be required as part of the application process.

Does my builder need to be registered?

Yes, your builder must be registered with the National Home Builders Registration Council (NHBRC). This ensures the quality of the build and compliance with national building regulations. The NHBRC also provides cover for major structural defects within the first five years of occupancy.

What are Absa’s minimum building requirements?

Absa provides a set of minimum building requirements and procedures that must be followed during construction. Your builder must review and agree to these standards before your building loan can be approved.

What is a waiver of builder’s lien?

A waiver of builder’s lien is a document where the builder agrees to transfer rights to the property and any additional funds to Absa. This ensures that any outstanding payments are settled through Absa rather than directly with the builder.

Where can I download the required building loan documents?

You can download required documents such as Absa’s minimum building requirements and the waiver of builder’s lien directly from the building loan page using the provided download links.

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Here’s what you’ll need:

Building contract

This document is provided by your builder and serves as proof of the partnership between you and them.
It outlines the terms of the project and breaks down all the costs and work that needs to be done for the building to be fully completed.

Bill of quantities

This shows the different stages of the building process and will need to be signed off by a quantity surveyor for the next stage to begin.
Get this document from your builder if it’s not included in your building contract.

Tender and schedule of finishes

Your builder will create a detailed list of all the materials they need and what they are needed for as well as the quantities.
The quantity surveyor will sign off this document before you start construction.

Building plan

This shows what the home will look like once completed. It is provided by your architect or builder and doesn’t need to be approved right away.

Registered builder

For us to approve your Building Loan, you’ll need to select a builder that’s registered with the National Home Builders Registration Council. This ensures the quality of work and its compliance against the standards set by the National Building Regulations and Building Standards Act.
The Council also covers you for major structural defects within the first five years of occupancy.

Absa’s minimum requirements

We’ll provide a document with procedures that need to be followed during construction. Your builder will have to agree to these standards before your Building Loan is approved.
Download the document here.

Waiver of builder’s lien

Signing this document means your builder agrees to hand over any extra money and overall rights to the property to Absa. If you have any outstanding money, it will need to be paid to Absa and not the builder.
Download the document here.