Apply for a Nedbank Mortgage Loan, reviewed by our experts. As of 17.02.2025, you have access to loan options. Increase your chances of approval by completing an online application and getting a free credit rating check.
Update 07.11.2024
Nedbank offers a comprehensive range of home financing solutions for South African clients, from first-time buyers to those refinancing or investing in property. With competitive interest rates tailored to individual risk profiles, deposits, and credit scores, clients receive flexible terms for primary residences, investment properties, and vacant land, with repayment periods up to 30 years. Nedbank’s digital tools on online banking and the Money App provide real-time tracking, installment calculations, and cost breakdowns, while dedicated mortgage consultants guide clients through every step, ensuring accessible, informed financing options.
Types of Nedbank Mortgages
Ordinary Home Loan. Provides up to 100% loan-to-value (LTV) for primary residences, with a maximum term of 30 years, and loan amounts from R100,000 to R5 million. Clients can choose fixed or variable interest rates and access features like NedRevolve for additional payments and withdrawals, and Accelerated Payments to expedite repayment.
Building Loan. Funds construction of new homes or major improvements, are disbursed in stages as construction progresses. Requires a builder registered with the National Home Builders Registration Council (NHBRC), and construction must start within three months of transfer.
Home Vision Loan. Allows clients to register a mortgage amount higher than the property’s current value to access surplus funds for future improvements, without additional bond registration costs.
Re-advance. Grants access to funds already repaid on an existing mortgage, with no additional attorney fees, as no new bond registration is required.
Further Loan. Provides an additional loan over an existing mortgage based on updated property valuation and credit assessment. This loan incurs attorney fees as it requires a second bond registration.
Vacant Land Loan. Specifically for purchasing vacant land in preapproved developments, financing up to 70% of the land’s value.
NedBonds. A loan for owner-occupied commercial and light industrial properties, offering a term of up to 10 years with 60-70% LTV, depending on property type and client profile.
Investment/Rental Properties. Designed for financing investment properties intended for rental or resale, with terms depending on the client’s financial profile and rental income potential.
Revolving Home Loan. Allows clients to deposit extra funds to reduce interest charges, with the flexibility to withdraw these funds as needed, providing efficient cash flow management.
108% Home Loan (First-Time Buyer Loan). Covers up to 108% of the property value, including registration costs, to support first-time buyers without a deposit entering the property market.
First Home Finance. A government-subsidized mortgage for first-time buyers with monthly incomes between R3,501 and R22,000. Subsidies range from R38,911 to R169,265, depending on income, which can be used to reduce the loan or cover attorney fees.
Expat Mortgage. Available for South African citizens residing abroad, offering loans in GBP, EUR, or USD for property purchases in the UK, Jersey, or Isle of Man.
Non-Resident Home Loan. Tailored for foreign nationals interested in purchasing property in South Africa, with up to 75% LTV for residents and 50% LTV for non-residents, subject to Reserve Bank approval and other criteria.
Guarantor Mortgage. Allows a third-party guarantor, such as a parent or relative, to provide financial support for those who might not meet affordability criteria on their own.
Green Home Loan. Supports eco-friendly home improvements, such as solar panel installations, through Nedbank’s green finance partnership, assisting clients in sustainable property upgrades.
Switch Home Loan. Enables clients to transfer an existing mortgage from another bank to Nedbank, often with reduced interest rates and minimal transfer costs, aimed at improving affordability for clients switching providers.
Private Wealth Residential Mortgages. Provides customized mortgage solutions for high-net-worth clients, offering flexible repayment terms and options for asset-backed financing tailored to individual financial needs.
Key Features
Flexible Repayment Terms. Nedbank offers repayment periods of up to 30 years, providing clients with flexibility in managing their monthly installments and overall loan duration.
Competitive Interest Rates. Interest rates are tailored based on individual factors like credit score, risk profile, and deposit amount, allowing clients to benefit from rates aligned with their financial standing.
Digital Tools. Accessible via online banking and the Money App, Nedbank’s digital tools offer real-time tracking, monthly installment calculations, and cost breakdowns, giving clients transparency and control over their mortgage process.
Dedicated Mortgage Consultants. Clients receive support from dedicated mortgage consultants who guide them through each step, ensuring informed decisions and smooth processing from application to approval.
Variety of Mortgage Options. Nedbank provides a wide range of mortgage products, including loans for first-time buyers, refinancing, investment properties, and vacant land, catering to diverse client needs and property goals.
NedRevolve and Accelerated Payments. Clients can use the NedRevolve feature to reduce interest in making additional deposits and withdraw funds as needed, while the Accelerated Payments option enables quicker mortgage repayment.
Pros and Cons
Pros
Customizable Mortgage Options. Nedbank’s diverse range of mortgage products allows clients to select financing solutions that match their property type and investment goals.
Real-Time Digital Access. Through Nedbank’s digital banking platforms, clients can monitor their mortgage details, make calculations, and access cost breakdowns, supporting proactive financial management.
Support for First-Time Buyers. The First Home Finance program provides government subsidies for eligible clients, improving affordability for first-time buyers within specific income brackets.
Cons
Eligibility Criteria for Non-Residents. Non-resident clients face additional restrictions, including lower loan-to-value limits and specific residency requirements, which can affect access to certain mortgage products.
Additional Fees for Further Loans. Clients opting for a Further Loan incur additional legal fees for bond registration, impacting the total cost of borrowing for those seeking additional financing on existing properties.
Transfer and Registration Costs. Nedbank mortgages involve once-off costs such as bond registration and property transfer fees, which can increase the initial financial burden on clients, especially those purchasing their first home.
How to Get a Nedbank Mortgage?
Evaluate Financial Situation. Assess income, expenses, and credit history. Use Nedbank’s online tools or consult a mortgage specialist for a realistic view of your borrowing capacity.
Explore Mortgage Options. Review Nedbank’s mortgage products, like Ordinary Home Loan, Building Loan, or First Home Finance, to select one suited to your needs.
Consult a Specialist. Speak with a mortgage consultant for tailored advice on loan options, interest rates, and specific eligibility, such as the First Home Finance subsidy program for first-time buyers.
Prepare Documentation. Collect essential documents like proof of income, credit history, ID or residence permit, and financial statements if self-employed. First Home Finance applicants may need additional documentation for subsidy qualification.
Submit the Application. Apply online via Nedbank’s digital platform or in-branch, ensuring all documents are uploaded accurately to avoid delays.
Credit and Affordability Check. Nedbank reviews credit scores and financials to set loan terms, aligning with your risk profile and loan eligibility.
Property Valuation and Legal Process. Upon approval, Nedbank will conduct a property valuation. Sign necessary legal documents with a conveyancer to register the bond.
Finalize Terms and Acceptance. Receive the mortgage offer with finalized terms, including the interest rate and the repayment period. Review and sign to confirm acceptance.
Requirements and Conditions
Requirements
Residency. South African citizens or permanent residents are eligible. Foreign nationals residing in South Africa with a valid permit may borrow up to 75% of the property’s value, while non-residents can borrow up to 50%.
Income Verification. Employed applicants must provide recent payslips and stamped bank statements for the past three months. Self-employed applicants need a letter of drawings, six months of bank statements, recent financial statements, and management accounts if statements are over six months old.
Age. Applicants must be at least 18 years old and legally competent to sign contracts.
Documentation. Necessary documents include a South African ID or residence permit, a marriage certificate if applicable, a signed offer to purchase, and asset/liability statements for loans over R2.5 million. Self-employed applicants must include business registration documents.
Additional Requirements for Foreign Nationals. Non-residents must secure Reserve Bank consent and provide proof of deposit funds from their country of residence.
Conditions
Loan Amounts. Loans range from R100,000 to R5 million, with up to 100% loan-to-value (LTV) for primary residences and up to 70% for vacant land and select investment properties.
Interest Rates. Rates are either variable or fixed, based on the applicant’s credit score, deposit, and financial profile.
Repayment Term. The maximum repayment period is 30 years, while commercial properties under NedBonds have a 10-year term limit.
Fees and Charges. Bond registration fees are approximately R3,000 to R5,000, with transfer fees based on property value, and an initiation fee of around R6,000. Clients are also responsible for ongoing costs like municipal rates, insurance, and maintenance.
Bond Registration Fees. Fees range from R3,000 to R5,000, with up to 50% discounts for clients earning R29,600 or less. Attorney fees apply for Further Loans, with similar discounts for qualifying applicants, and additional discounts may be available for first-time buyers.
Government Subsidies. First-time buyers with income between R3,501 and R22,000 may qualify for the First Home Finance subsidy, offering up to R169,265 depending on income, to reduce loan amounts or cover attorney costs.
Ways to Receive the Money
Upon approval, Nedbank disburses mortgage funds directly to the conveyancer for property purchases, ensuring a secure transfer for the transaction. For Building Loans, funds are released in stages to the NHBRC-registered construction company as each phase is completed. For Further Loans or Re-advances, funds may be transferred to the borrower’s Nedbank account for flexible use.
How to Repay Nedbank Mortgage?
Automatic Debit Orders. Set up automatic debit orders from your Nedbank account to ensure timely monthly mortgage payments, reducing the risk of missed payments and simplifying the process.
Payments from Other Banks. You can also pay from an account at another bank by setting up a direct debit or electronic funds transfer (EFT) to Nedbank. Coordinate with Nedbank to arrange this option, ensuring payments are processed on schedule.
Online Banking and Mobile App. Use Nedbank’s online banking or Money App to monitor your mortgage balance, review payment history, and track remaining principal and interest, keeping you informed of your repayment progress.
Flexible Payment Options. Choose from different payment frequencies, including monthly and bi-weekly options, to align with your income flow and budget preferences, optimizing cash management.
Additional Payments. Make additional lump-sum payments whenever possible to reduce the principal balance, saving on interest over the loan term and potentially shortening the repayment period.
Early Repayment Features. Utilize features like NedRevolve, allowing you to make extra payments that can be withdrawn if needed or applied to reduce your mortgage debt, providing flexibility to manage repayments based on your financial situation.
Things to Pay Attention to
Interest Rate Options. Check if the rate is fixed or variable, as this affects monthly payments and total interest. Rates vary by income, credit score, and deposit amount, so ensure they fit your budget.
Loan-to-Value (LTV) Ratio. Confirm the deposit requirement. Primary residences may get up to 100% LTV, while investment properties and non-resident loans often need a higher deposit.
Repayment Term. Evaluate the loan term, up to 30 years for residential properties. Shorter terms reduce interest but raise monthly payments; longer terms lower payments but increase interest.
Monthly Payment. Calculate monthly payments based on loan amount, term, and rate. Ensure affordability within your budget, especially with variable rates.
Income Requirements. Verify income requirements, as certain products, like First Home Finance, have specific brackets. Ensuring your income meets the criteria prevents approval delays.
Credit History. Review your credit to ensure eligibility and favorable rates. Strong credit may qualify you for lower rates.
Documentation. Gather proof of income, bank statements, and identification. Some loans, like Further Loans, may need updated property valuations.
Additional Costs. Account for bond registration, transfer fees, and attorney costs, which vary by loan amount and property value.
Government Programs. Explore options like First Home Finance for first-time buyers in specific income brackets to reduce costs.
Editorial Opinion
Nedbank’s mortgage options cater to diverse needs, from first-time buyers to high-net-worth clients, offering up to 30-year terms, personalized rates, and useful tools like NedRevolve for flexible payments. While the bank provides a broad range of solutions, such as Building Loans and Private Wealth Mortgages up to R5 million, strict criteria for non-residents and added fees for products like Further Loans require careful budgeting. Overall, Nedbank’s combination of digital tools, consultant support, and tailored options make it a strong choice, though clients should prepare for specific eligibility and fee requirements.
Are there options for clients looking to build on a vacant lot?
Nedbank offers a Building Loan for construction on vacant land, provided the builder is registered with the National Home Builders Registration Council (NHBRC). Note that construction must generally begin within three months of the property transfer.
Can existing Nedbank clients receive a discount on bond registration fees?
Yes, clients earning R29,600 or less may qualify for a 50% discount on attorney bond registration fees when taking out a new home loan or refinancing an existing loan with Nedbank.
What happens if my home loan application is denied by a bank? Can I still receive the subsidy?
No, having an approved home loan from an accredited South African bank is a requirement to receive the First Home Finance subsidy.
Can I reapply for a First Home Finance subsidy if I’ve previously owned property?
No, the subsidy is only available for first-time homebuyers who have not benefited from previous government housing subsidy schemes or owned a home before.
Is there any cashback benefit when using First Home Finance?
Qualifying clients with monthly incomes of R29,600 or less can receive a R5,000 cashback deposited into their Nedbank account if they choose Nedbank for their main transactional banking and meet specific criteria.