Applying for a home loan can be daunting. That’s why we appoint a property finance consultant to guide and assist you to make informed decisions about your home loan.
From looking at your budget and finding the right loan structure to answering your questions, your consultant is here to help you every step of the way.
We know that cash can be tight at times, and it can get even tighter when you are moving home. That’s why we offer up to 100% of the property value in a loan. It gives you just a little bit more room to move. We will assess your credit history, your ability to repay the loan and the value of the property to determine what you can qualify for.
Every homebuyer is unique and their financial needs are too. Your property finance consultant will work closely with you to decide on a term that suits your budget. You can choose a term of up to 25 years. With a shorter loan term, you’ll pay more every month, but the total cost of your home will be less. If you extend your loan term, you’ll pay less every month, but your final cost will be more over the long term.
With an Old Mutual approved bond registration attorney, you can save up to 50% on the bond registration costs on your new home loan, or when you switch from another provider to us (terms and conditions apply). Speak to your property finance consultant about possible options to add these fees to your home loan.
Take a step to a sustainable future and install solar power in your new home. You can now opt in for a solar quote to include in your Old Mutual home loan. Old Mutual has partnered with an accredited solar solution provider to ensure that you get a quality solar installation to reduce energy costs and have uninterrupted power supply. This is a great opportunity to get access to this much needed solution.
There are three ways to get extra finance:
- Redraw facility - you can re-borrow any amount you have already paid over and above your required instalments (provided the result is not a full repayment of the outstanding loan amount).
- Further advance - you can tap into the equity amount in your home loan that’s available to you, up to your existing registered bond amount.
- Further loan - you can take up a loan amount over and above your current registered bond amount if you need to.
- You want to buy (for new loans) or own (for switching or refinancing) property in South Africa.
- You must have a minimum combined gross household income of R32 001 per month. This can include the gross income of another applicant.
- The property value must be at least R650 000 and have a loan value of R450 000.
The documentation required for a home loan application varies, depending on employment type or marital status. Your property finance consultant will help you through this process. The basics we will require are:
- Latest municipal rates, utility statement and where applicable levy statement
- Copy of offer to purchase
- Copy of ID
- copy of marriage certificate or antenuptial contract
- Proof of income and bank accounts
Your home is one of your biggest investments - have peace of mind knowing your home and family are protected. Old Mutual offers bundled insurance packages at great rates, covering everything you need to safeguard your home. With tailor-made, affordable plans, you can rest easy knowing your home - and your future - are protected.
Interest on a long-term loan, like your home loan, can substantially increase the final cost of owning your home. That’s why, based on your Old Mutual Rewards tier, we’re giving you a further reward to reduce the cost of owning your dream home. The higher your Old Mutual Rewards tier, the more you are rewarded – earn up to 35% of your monthly repayment in Old Mutual Rewards points.
Earn Old Mutual Rewards points on monthly repayments.
We’ve answered some questions you might have.
- Bond initiation fees: This is a fee charged for processing the bond application.
- Bond registration fees: This is the fee paid for the service of legally registering your bond with the Deeds Office. This is paid to bond registration attorney/conveyancer.
- Transfer duty: Transfer duty is a tax payable by a property buyer when it changes hands from one person to another. No transfer duty applies if the property is being purchased from a developer. However, VAT will be payable on the purchase price.
- Access to any additional value in your property (known as equity – a once-off cash amount you could get out)
As a general rule, the monthly bond repayment amount may not exceed 30% of your gross monthly income.
You can get a home loan of up to 100% of the value of your property. We will assess your credit history, your ability to repay the home loan, and the value of the property to determine if you qualify.
It depends. If you are married to your partner in community of property, then both your credit scores will be considered in the application. If you are married out of community of property, then you or your partner can apply for sole ownership without the other partner’s credit score affecting your application.
The major once-off costs include:
Transfer attorney fees: Transfer fees are transferring the property into your name. Note that the R1.1 million exemption does not apply to transfer fees, only to transfer duty.
The Old Mutual Home Loan covers residential properties in South Africa only.
Yes, switching from an existing home loan from other providers is covered in this offer.
The Home Loan is a variable rate loan, linked to JIBAR. It is subject to change every quarter.
Old Mutual will reward you for paying back your home loan every month with Old Mutual Rewards points. The number of Old Mutual Rewards points you will earn is the earn rate based on your Old Mutual Rewards tier multiplied by your monthly repayment amount.
You automatically qualify for a discount of up to 50% of the bond registration costs on your new home loan or when switching your existing home loan to Old Mutual Home Loans. Note that the discount applies to bond registration attorney fees.
The documentation required to submit a Home Loan application varies, depending on things like your employment or marital status.
Joint bonds follow the same process as single home loan application, however all parties involved will be assessed.
After the relevant legal documents are lodged at the Deeds Office, the registration process typically takes between 8 and 12 weeks to complete. However, delays are possible if information is incomplete.
You will have the right to cancel your home loan account or keep it open as a line of credit. If you cancel the home loan account, Old Mutual will release your title deed.
If you switch to Old Mutual Home Loans, we may be able to offer you a more competitive interest rate on your home loan. If you get a lower interest rate and monthly instalment, you could free up some money in your monthly budget which can be used on projects such as home improvements.
Other possible benefits include:
Use any equity you receive to reduce your short-term debt, do home improvements or towards education
Should you switch your existing home loan from another provider, you’ll be charged cancellation fees from your existing provider – this is charged to cancel the loan with them before registering a new home loan with Old Mutual Home Loans.