Apply for a Standard Bank 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 13.11.2024
Standard Bank offers a range of flexible home loan options tailored to South Africans’ diverse needs, with competitive rates and personalized terms. Designed for first-time buyers, homeowners refinancing, and property investors, Standard Bank’s mortgage solutions include traditional home loans, re-advance loans, pension-backed lending, and building loans. With streamlined online applications, in-branch support, and tools like Qualify Me to assess affordability, Standard Bank provides a comprehensive and accessible approach to home financing.
Types of Standard Bank Mortgages
New Home Loan. This traditional mortgage is designed for purchasing a new home and offers financing flexibility with coverage of up to 108% of the property’s purchase price, which can help cover additional costs like transfer duties without the need for a second bond. Loan terms can extend up to 20 or 30 years, depending on eligibility, and interest rates are personalized based on the applicant’s credit profile, with a maximum rate of 20%.
Pension-Backed Lending. This mortgage uses retirement savings as security, providing an option for clients who may not have property as collateral. It is specifically designed for purchasing residential property and allows for borrowing up to 100% of available pension funds. Interest rates are tailored to individual credit profiles, with a maximum potential rate of 20%.
Access Bond. This option allows existing Standard Bank home loan clients to deposit additional funds into their mortgage account to reduce the principal and, consequently, the interest paid over time. The unique feature of this loan is that the extra funds deposited can be withdrawn if needed, offering a flexible line of credit. The interest rates are personalized based on the client’s financial profile, with a maximum rate of 20%.
Re-Advance Home Loan. Available for clients who have paid off part of their mortgage, this loan allows them to borrow against the already repaid portion of their home loan. It is often used for home improvements or other major expenses, enabling clients to access funds without taking out a separate loan. The interest rate is based on the client’s credit profile, up to a maximum of 20%.
Building Loan. Tailored for clients constructing a new home, this loan disburses funds in stages as each construction milestone is completed, ensuring that financing aligns with the building process. With standard terms extending up to 20 or 30 years, interest is calculated only on the disbursed amount during the construction phase, with a maximum interest rate of 20%, subject to the client’s credit profile.
Key Features
Flexible Loan Terms. Standard Bank offers loan terms from 20 to 30 years, allowing borrowers to select a repayment period that suits their financial planning and goals.
Personalized Interest Rates. Interest rates are tailored to the applicant’s risk profile and financial history, with options for both fixed and variable rates to accommodate different preferences and market conditions.
Home Loan Calculator and Pre-Approval. The bank provides a home loan calculator and a pre-approval feature on its website, giving clients a clear idea of affordability and eligibility, and streamlining the home-buying process.
Loan Options for Different Needs. Standard Bank provides specialized options, including loans for first-time buyers, refinancing, property investment, and building a home, catering to varied borrower needs.
Digital Application and Management. Clients can apply online or through the banking app and manage their loans with the bank’s digital banking tools, providing convenience and control over the loan process and payments.
Pros and Cons
Pros
Personalized Debt Relief. The bank provides personalized debt relief solutions for clients struggling to meet monthly repayments, ensuring support during challenging financial periods.
No Need for Additional Loans. The AccessBond facility eliminates the need for a separate personal loan for home improvements, making it simpler to manage household finances.
Transparent Early Termination Process. Clients can easily manage bond cancellations, with clear requirements like providing 90 days' notice, reducing uncertainty in the process.
Cons
Initiation Fees for New Loans. All new home loans carry initiation fees, which can be significant, especially for juristic entities, adding to the initial costs of obtaining a mortgage.
Early Termination Interest. Clients wishing to cancel their mortgage early may face 90 days of pro-rata interest if the required notice isn't given, which can be costly.
Higher Fees for Juristic Entities. Juristic entities such as companies and trusts face higher initiation fees and monthly service charges, making mortgage borrowing more expensive for these borrowers.
How to Get a Standard Bank Mortgage?
Evaluate Your Financial Situation. Start by assessing your income, expenses, and credit history. Use Standard Bank's online calculators or consult with a financial advisor to determine how much you can afford to borrow.
Explore Mortgage Options. Familiarize yourself with the different home loan products Standard Bank offers, such as Ordinary Home Loans, Building Loans, and AccessBond. Consider your financial goals and preferences when selecting the right product.
Speak to a Consultant. Contact a Standard Bank mortgage consultant via phone or visit a branch to receive personalized advice on which product best suits your needs. Consultants provide insights into the specifics of each mortgage type.
Gather Required Documentation. Prepare all necessary documents, including proof of income, credit history, a valid South African ID, and recent bank statements. Juristic entities need additional documentation, such as company registration certificates.
Apply Online or at a Branch. Submit your mortgage application online through Standard Bank's website or mobile app, or visit a branch. You will need to provide accurate personal, financial, and property details to complete the application.
Credit Assessment and Approval. After submitting your application, Standard Bank will perform a credit assessment to determine eligibility. If approved, you will receive a loan offer with details on interest rates, fees, and repayment terms.
Sign Loan Agreement. Once you are satisfied with the loan offer, sign the agreement. This can be done electronically or in-person at a branch. Ensure you understand all the terms before finalizing.
Property Valuation and Bond Registration. Standard Bank will conduct a property valuation to confirm its market value. After this, the bond will be registered at the Deeds Office, completing the process.
Requirements and Conditions
Requirements
Age Requirement. Applicants must be at least 18 years old to apply for a home loan, and the loan term must not extend beyond the applicant's retirement age.
Residency Status. Applicants must be South African citizens or permanent residents. Foreign nationals may also apply but are generally limited to borrowing up to 50% of the property's value, with the remaining 50% funded from their own resources.
Proof of Income. Employed individuals must provide their latest three months' payslips and bank statements. Self-employed applicants need to submit financial statements and proof of income verified by an accountant.
Identification Documents. A valid South African ID or passport is required for all applicants. Juristic entities need to provide company registration documents.
Offer to Purchase. A signed offer to purchase agreement is necessary as part of the application process.
Credit History. Applicants must provide their credit history, which will be assessed by Standard Bank to determine eligibility. Foreign nationals should provide any available international credit records.
Conditions
Maximum Loan Amount. Foreign nationals are typically restricted to a maximum loan amount of 50% of the property's purchase price.
Interest Rates. Interest rates are determined based on the applicant's credit profile and the loan amount. Tiered interest rates may apply, allowing for lower rates as the outstanding balance decreases.
Loan Term. The maximum loan term is 30 years, depending on the applicant's age and financial situation.
Initiation Fee. An initiation fee of R6,037.50 is applicable for natural persons, while juristic entities are subject to an initiation fee of R13,110.
Monthly Service Fees. Monthly service fees vary depending on the type of account and the loan amount. For instance, loans greater than R500,000 entered into after May 2016 carry a monthly fee of R69.
Early Termination Notice. If an applicant wishes to terminate their bond early, they must provide 90 days' written notice. Failure to do so will result in an early termination fee equivalent to 90 days' pro-rata interest.
Bond Registration Costs. Additional fees apply for bond registration, including conveyancing costs, which are the responsibility of the applicant.
Ways to Receive the Money
Once the mortgage is approved, Standard Bank disburses the funds directly to the conveyancing attorneys responsible for the property transaction. The funds are used to pay the property seller or the construction company in the case of a building loan. There are no direct cash disbursements to the borrower’s account or card, ensuring that all funds are securely managed for the intended property purchase, adhering to South African property transaction protocols.
How to Repay Standard Bank Mortgage?
Automatic Debit Orders. Set up an automatic debit order to deduct the mortgage payment from your Standard Bank account every month, ensuring timely payments and reducing the risk of missed payments.
Online Banking Management. Manage your mortgage through Standard Bank's online banking platform or mobile app, where you can view your statements, make payments, and track your repayment progress conveniently.
Additional Payments. Make additional payments towards your mortgage whenever possible to reduce the total interest paid and shorten the loan term. Standard Bank allows lump-sum payments to be made at any time.
Payment Frequency Options. Choose from different payment frequency options, such as monthly or bi-weekly payments, to suit your financial preferences and help you manage your cash flow effectively.
Things to Pay Attention to
Interest Rates. Understand the type of interest rate you are getting, whether fixed or variable and how it will impact your monthly payments. Variable rates can change over time, affecting your repayment amount, while fixed rates remain stable throughout the loan term.
Loan-to-Value Ratio (LTV). The LTV ratio is the percentage of the property's value that the bank is willing to finance. Standard Bank typically finances up to 100% for South African citizens, while foreign nationals are limited to 50%. Knowing your LTV will help you understand how much deposit you need.
Monthly Payment. Calculate your estimated monthly payment based on the interest rate and loan term. Make sure the payment fits within your budget, considering other monthly obligations you have.
Mortgage Term. Choose a term that aligns with your financial goals. While longer terms reduce monthly payments, they increase the total interest paid over time. Standard Bank offers mortgage terms up to 30 years.
Credit History. Your credit history significantly affects your eligibility and the interest rate offered. Make sure your credit record is in good standing before applying, as this can help you secure a more favorable rate.
Additional Costs. Be aware of additional costs such as bond registration fees, initiation fees, and conveyancing costs. These fees can add up significantly, and it's important to budget for them accordingly.
Editorial Opinion
Standard Bank's mortgages offer flexible repayment options, comprehensive insurance, and diverse loan types. The AccessBond feature allows surplus withdrawals, adding financial flexibility. High initiation fees and potential early termination interest are notable drawbacks. Clients should use the affordability calculator, monitor the loan-to-value ratio, and review statements regularly. Standard Bank's mortgage products are well-rounded, but borrowers must evaluate costs and conditions for long-term affordability.
Late payments can result in penalty fees, which are added to the outstanding balance. It is important to set up automatic debit orders to avoid these penalties.
Can I refinance my existing Standard Bank mortgage to take advantage of better interest rates?
Yes, Standard Bank allows refinancing options for clients who wish to modify their mortgage terms to take advantage of better interest rates or other favorable conditions.
Are there specific incentives for first-time home buyers at Standard Bank?
Standard Bank offers financing of up to 108% for first-time home buyers, covering the cost of transfer duties and other associated expenses, providing a financial advantage for new buyers.
What is the maximum duration allowed for a mortgage with Standard Bank?
The maximum loan term offered by Standard Bank is 30 years, depending on the client's age and financial profile.
Is it possible to switch from a variable to a fixed interest rate during the mortgage term?
Yes, Standard Bank allows clients to switch from a variable interest rate to a fixed rate during the term of the mortgage, providing flexibility based on market conditions and financial goals.