Apply now
Make progress payments as you build your perfect home
Get a structured payment plan to help you build your home.
Apply now

Here’s what you need to know 

  • Costs involved

    • Your Building Loan can include the cost of the vacant land if you’re buying it or just your home’s construction cost if you already own vacant land. 
    • If you’re buying land, the funds will be paid to you when your loan is registered and you’ll make progress payments towards your home’s construction. 
    • The Building Loan will be calculated on your property’s market value as if it has been completed. You’ll be liable for any shortfall in building costs. 
    • You’ll need to make a deposit for your builder to start construction. 
    • Materials such as windows, aluminium doors, kitchen cupboards and similar will not be covered by your Building Loan. 

  • How it works

    • Your builder will request a progress payment when they need more cash for materials. 
    • Before you make the payment, ensure that the work they were doing has been completed before moving on to something else. 
    • You’ll then submit a Progress Payment Form to hlbuilding@absa.co.za. When the payment has been validated, an evaluator will come out to do an inspection before you’re paid out. Remember, you can only submit one Progress Payment Form at a time. 
    • Progress payments are authorised by you but paid by us. A set number of progress payments (no more than six) will be determined before you start construction. Therefore, you and your builder must enter into an agreement stating that progress payments will only be made after a certain amount of work has been done. 

  • Interest and progress payments

    • Interest will be calculated from your first progress payment and will increase with every progress payment thereafter. This is called interim interest. 
    • Staying up to date with paying off your interim interest is important, as missed payments will be added to your outstanding Building Loan, which will decrease the funds you have available for construction.  

  • Your final progress payment

    • The final progress payment will be paid once we’ve received an occupation certificate from you.
    • You’ll get this from your local municipality once construction has been completed and you’re ready to move in. 

Explore our range of home loan solutions

Solar and Energy Finance

Solar and Energy Finance
Interest rate discount 
0.20%
Maximum loan
R300 000

Make power cuts and high utility bills a thing of the past and get 0.20% off your interest rate. Ts & Cs apply.

Tell me more Apply now

Building Loan

Building Loan
Loan amount
Up to 100%
Maximum term
30 years

Design and build your home your way with a competitive interest rate and six progress payments with our Building Loan.

Tell me more Apply now

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.                                                                          

See more

Protect your home while building

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

See more

Build or buy?

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

See more

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