JumpStart helps the buyers who can not afford the deposits and other up front costs like transfer fees, bond registration costs etc. A maximum loan of 108% is allowed to help you with these payments, especially when you are a first time homebuyer. The loan amount is calculated on 108% of the total value of the property. The criteria that applies to the JumpStart option include:
- All first-time homebuyers who want to include bond costs (transfer and registration fees)
- Single or joint income must be R6,000-00 or more a month
- loan amounts between R100,000-00 and R1,000,000-00
- Structural insurance is compulsory
A JumpStart Home Loan will not be available for the following loan types:
- business mortgage
- vacant land
- customers who have a single or joint income of less than R6,000-00 a month
- Home loans in the name of a close corporation, company or trust; and switches from other banks (even if it is your first home loan).
The maximum loan amount that can be applied for is 104% of the loan to value (LTV). Costs can therefore be included up to a maximum of 4%. However, if the home loan including the bond costs (transfer and registration fees) totals to less than the 4% maximum, the additional fees over and above registration and transfer cost, up to 4% of the value of the property, are not paid out and are returned to the bond. Funds will only be made available for the actual costs of registering the new bond.
You can apply for an AccessBond link or limit facility. This is only available once the loan to value (LTV) is less than 100% i.e. once the cost portion is paid off.
Further Advance and Re-advance:
You may apply for a Further Advance or Re-advance once your LTV is less than 100% of the assessed value i.e. once the cost portion is paid off.
A debit order is compulsory.
The portion of the loan which exceeds 100% of the assessed value of the property will be priced at a risk premium of 1.5%.
- 0 to100% LTV- priced at the Home Loan Base Rate less a concession (if applicable)
- Greater than100% LTV- priced at Home Loan Base less a concession (if applicable) plusthe 1.5% risk premium
JumpStart options available :
There are two Jumpstart options available:
- Jumpstart option1: variable rate
- Jumpstart option 2: 2 year fixed rate
These options are explained below.
Variable rate option – Option 1:
You can enjoy the flexibility of a fluctuating rate, while also including the costs of the loan.
Fixed rate option – Option 2:
A fixed rate option ensures that you have assurance regarding your repayment commitment for two years, while also including the costs in the loan. This option assists in budgeting for the next two years.
The standard fixed home loan interest rate option contract must be signed in agreement to the fixed rate terms and conditions.
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