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What does my monthly instalment include?

Your monthly home loan repayment normally consists of:

Homeowners insurance is compulsory, and it is a condition of the home loan to have insurance cover on all freehold properties at full replacement value. You must protect your home against natural disasters, such as fire, flood damage, etc. You may insure your home with Nedbank or choose your own insurance provider. For sectional title properties, this insurance is included in your monthly levy.

Credit life insurance is optional, and you may take out insurance so that your home will be secured should anything happen to you. The policy terms and conditions will indicate the events and circumstances in respect of which you will be covered.

You’ll pay a service fee for the costs of maintaining your home loan account. This fee will be included in your monthly home loan instalment.

Tip: When completing the home loan application, please select your homeowner's and/or credit life insurance requirements.

What documents must I include in my application?

You will need to supply us with the following supporting documents:

If you are self-employed, an entrepreneur or commissioned worker:

What documents must I include in my building loan application?

You will need to supply us with the following supporting documents:

How is interest calculated on a building loan?

Interest is charged once the first progress draw has been paid out, and is calculated only on the amount that the bank has already paid out.

When does interest become payable?

Interest becomes payable once your first progress payment has been made. This ensures that accrued interest does not eat into the capital amount that has not yet been paid out by the bank.

What are progress payments?

Progress payments refer to the progressive draws in which the building loan is paid out. These draws are paid out in stages as the building progresses. Nedbank will advance the builder a series of payments on the condition that the bank is satisfied with the percentage of building work completed. The builder normally requests three to four progress payments before the completion of your home.

When is my first instalment for a progress payment due?

Interim interest is due once your first progress payment has been made. Should you not pay interim interest, it will be deducted from the loan together with any costs, fees and premiums payable by you that have not been paid. This is done before the final progress payment can be advanced.

If you do not budget for interest and expenses it can affect the remaining balance of your loan and could result in the builder looking to you to cover the shortfall from your own pocket.

No upfront payments will be authorised from your loan, you must make sure that the builder has sufficient funds to get started and to complete at least 30% of the building project. Your first full instalment becomes payable once the final progress draw has been paid by us.

Why does Nedbank request that builders be registered with the National Home Builders Registration Council (NHBRC)?

It is a statutory requirement that the construction of all new homes is enrolled with the NHBRC.

NHBRC Warranty Scheme

The warranty scheme was established to provide warranty protection against defects for all new homes. The consumer will be given protection against contractors who deliver substandard design, workmanship and poor quality materials.

A housing Consumer has the right to:

If a builder is unable or unwilling to rectify reported defects, the NHBRC can rectify the defects, following the completion by the consumer of a complaint and conciliation process.

Go to www.nhbrc.org.za for more information.

What is a repossessed property?

A repossessed property is a property that is bought back by the bank during a sale in execution as a way of recovering the outstanding debt on its home loan account. This process is only followed if the previous owner comes into financial distress, and is unable to continue with their home loan repayments despite the bank's attempts to assist through a payment rehabilitation programme.

Do I need to bid at a sheriff auction to secure a repossessed property?

No, you do not need to bid at a sheriff's auction.

Who can sign up for the Nedbank-assisted Sales Programme?

Nedbank-assisted Sales is offered to qualifying Nedbank clients who are experiencing financial difficulty and are interested in selling their property.

Who can apply for self-service banking?

Every single Nedbank client can enjoy the benefit of a self-service banking profile even if your only Nedbank account is a home loan.

What documents do I need to purchase a repossessed property?

What are the costs involved in buying a repossessed property?

Are there transfer duties payable on the purchase of a repossessed property?

There are no transfer duties to be paid, which means even further savings when buying a Nedbank-owned property.

Who settles any outstanding rates and taxes on a repossessed property?

How do I find out if a repossessed property is still available?

Will I be able to view repossessed properties?

What about the occupation of the property?

What home loan communication is available by email?

Nedbank has made the following types of client communication available by email:

Will I be charged for eStatements?

No, there is no additional cost for this service.

What are the benefits of eStatements?

Do I need to download any software to view my email communication?

With the exception of Adobe Reader, which you can download for free through a link in the email we send you, no additional software is required.

How do I open my eStatement?

What is a sale in execution?

A sale in execution (SIE) is a legal process whereby properties are sold at a public auction by the local sheriff (appointed as an officer of the court) on instruction by an execution creditor (usually a bank) to the highest bidder at the fall of the hammer.

What does Nedbank do to avoid a sale in execution?

If a homeowner falls behind on their contractual repayments, we make every effort to contact them (by telephone, SMS, post and/or email) to understand their situation. This is important as we need to find the best possible solution either to rehabilitate the loan or to minimise the losses that the client will experience.

A sale in execution (SIE) is our last resort, as the financial losses to both our clients and us are significant.

We have several options available to our home loan clients in case of financial distress. We also aim to provide clear advice so that the client may fully understand the financial impact of each one. More information on ways to manage your loan can be found here.

In essence, there are five major scenarios when a client faces financial difficulty:

  1. Clients who have missed payments but are now able to bring their payments up to date can arrange with us to meet their current monthly obligations.
  2. Clients who can't bring their payments up to date but who can pay regular monthly instalments are assessed to see if their accounts can be restructured over a longer period. This option is available to clients who can afford the new instalment.
  3. We formally advise clients of their rights under the National Credit Act, 34 of 2005 (NCA), to approach a debt counsellor within a set period. We actively participate in and support debt counselling arrangements that meet the requirements of the NCA.
  4. For clients who can't afford repayment in terms of any of the repayment plans, we provide Nedbank's Assisted-Sales programme. This programme entails the marketing and selling of clients' houses through some of the country's leading estate agents in normal, non-distressed circumstances. The prices clients get for their assets from this process are usually far better than those from an SIE.
  5. Finally, if the client is unable or unwilling to sell through the assisted-sales programme, we have no choice but to limit our losses as far as possible by realising our security (i.e. selling the property) through the legal process.

The legal recovery process can be summarised as follows:

Our key message to clients in distress is to contact us so that we can work out the best solution together, rather than following the legal recovery process. So, if you find yourself struggling to make your home loan repayments, please reach out to us. We are always here to help you.