Do you need more money? With our ReAdvance you can renovate your home, or perhaps pay your daughter’s study fees or settle your other debt. Whatever your need, you could take your existing home loan back up to its original loan granted amount.
How to get it and what you can expect
- Apply to take up the difference between the outstanding balance on your home loan and the original loan amount granted
- Access your funds at the home loan interest rate, which is lower than other lending products, such as a personal loan
- With a ReAdvance you do not need to register another bond and there are no attorney fees
- The available amount is subject to credit approval and lending rules
Client A needs an amount of R300 000 and submits an application for a ReAdvance. No additional bond needs to be registered and the loan can just be advanced to the original loan granted amount of R1 000 000
- Original total loan granted: R1 000 000
- Paid off to date: R300 000
- Outstanding balance: R700 000
- Amount you have access to: R300 000
- Remember when you apply for a ReAdvance, normal credit and affordability criteria will apply and Absa will have to do an evaluation on your property to determine the security value
- There are no legal fees applicable for a ReAdvance
In order to make the process easier and cheaper, we recommend that when taking out a new loan, a higher bond amount be registered than needed for the initial loan. In doing this, in future when you want to take up a Further Advance, it will save you on bond registration costs and significantly shortens the payout of the Further Advance, if approved.