Standard Bank Mortgages Review – The Perfect Loan for the Perfect Home

Standard Bank Mortgages Review – The Perfect Loan for the Perfect Home

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Standard Bank
Screenshot of Mortgages Home Page Standard Bank

It’s very uncommon for future homeowners to have all the funds they need at their disposal to purchase a home. Savings, investments, and deposits tend to only make a small portion of such a large purchase. It is often up to institutions to do the rest. Banks offer mortgages which provide customers with the funding they need to purchase the home of their dreams. However, this is within the budget they can afford. Standard Bank Mortgages offers customers just this and often tend to outplay some of the competitors in the market. This review takes a closer look at why these mortgages are rated as some of the best in South Africa. Also, it compares how these loans fare on a global playing field.

A bank that takes pride in the positioning of its investments is Deutsche Bank. Read here to see what they have to offer.

About Standard Bank

Standard Bank
Screenshot of the History of Standard Bank

Standard Bank is a subsidiary of Standard Chartered and opened doors to its South African customers in the sixties. A fairly modern bank, it provides a variety of products and services to a client base that covers individuals and juristic persons from all walks of life.

Although Standard Bank is a prominent figure in the commercial development arena, it also provides the right services to those in the retail division. This allows them to grow an expanding asset book, which is why Standard Bank is regarded as the largest bank in Africa.

For a full review of Standard Bank, read here.

Why a Mortgage Can Be a Better Idea than Renting

There is just something special about picking up the key from the estate agent with the knowledge that you can put your pictures on every wall. This without worrying about upsetting a fussy landlord. But there are other benefits too.

Owning a Property is an Asset

There are some ups and downs in the property market, however, those who manage to hold onto their properties for a number of years often have the pleasure of selling them for far more than the purchase price. Although this could attract capital gains tax, there is also the knowledge that the value of the property increased by just living in it. Those who wish to keep the property in the family, have the opportunity to pass it on to relatives or keep it in a trust for future income or to provide a residence for descendants.

Investment Opportunities and the Ability to Generate an Income

Consumers don’t have to have more than one property in order to get their property to generate an income. They also have the opportunity to build a flatlet on the property to earn an income. Also, there is the option to purchase properties, remodel or restore them, and then sell them for a profit.

The Option to Expand if the Layout Allows It

There’s another family member on the way, and it’s time to get a bigger house. Or properties that allow it, can convert into that additional bedroom which will not only accommodate the additional member but also add value to the property.

Standard Bank Mortgages Product Offerings

Standard Bank
Screenshot Mortgage Options Standard Bank

Buying a First Home

It takes no time to fall in love with the property that matches both the budget and also the needs. The loan shouldn’t be any more difficult to apply for.

  • Customers need to be over the age of 18, earn at least a single or joint monthly salary of R3,500 or more, and have a transactional account into which their salary is deposited.
  • This loan type provides customers with competitive interest rates.
  • Furthermore, customers who buy for the first time have the option to apply for a 104% loan. This is as long as the extra 4% is used towards the transfer and bond registration costs.
  • The loan type allows the buyer to apply on their own, or with a partner.
  • Customers can repay the loan over a period of up to 20 years.
  • The loan amount allows customers to register a bond amount higher than the loan amount, in order for them access the funds later. This will prevent them from having to submit the details to the deeds office again, which is a massive drop in cost.
  • Also, customers have the option to register for credit life in the event of death, disability, or retrenchment.
  • Finally, there is also the option to include homeowner’s insurance.

Buying Another Property

This home is for vacation purposes or to act as an investment. Furthermore, the criteria to apply for the loan is still the same as for the first time buyers.

  • Customers can borrow up to 100% of the property’s value or purchase price.
  • This loan type allows customers to apply for the loan as a private individual, with another person or persons, or as a juristic entity.
  • The loan period is up to a maximum of 20 years.
  • Furthermore, this loan type also allows customers to register a loan type higher than they need. This will save them fees should they wish to access the funds at a later stage.
  • Customers also enjoy competitive interest rates.
  • Finally, there is the option to include homeowner’s insurance.

Building a Home

Customers who wish their property to be entirely bespoke, have the option to build it according to their specifications. Furthermore, the criteria to apply for the loan is the same as for the other loan types.

  • This loan type allows customers to earn an income of up to 100% of the property’s value or purchase price.
  • Also, customers can apply for the mortgage as a private individual, with others, or as a juristic person.
  • Furthermore, customers have up to 20 years to repay the loan.
  • The loan type provides customers with the opportunity to register a bond amount greater than the loan needed. Customers can use the funds later as needed.
  • Customers enjoy competitive interest rates.
  • Finally, there is the option to include homeowner’s insurance.

Switch a Mortgage

The option requires customers to meet the same criteria as for the other loan types. Furthermore, customers will enjoy competitive loan types.

  • Customers have the option to apply alone or with their partner.
  • There is the option to include homeowner’s insurance. There is also the option to include credit life insurance to cover in the event of death, disability, or retrenchment.
  • Also, customers are required to cancel their bond with their current financial institution.
  • The loan period is up to 20 years.
  • Finally, customers have the option to register a bond higher than the loan amount required. This will save them money in further registration costs later on should they need it.

Business from Home Loan

This is the ideal loan type for those who wish to start a home based business. Furthermore, the property will act as security for the loan.

  • This loan type requires clients to have a slightly higher monthly salary of R6,000.
  • It is also important that the residential property is used partially for business.
  • Customers have the opportunity to borrow up to 80% of the value of the property or purchase price.
  • Also, there is the opportunity to include homeowner’s insurance.
  • Finally, customers can repay the loan over a period of 20 years.

Pension-backed Lending

Customers who wish to back their loan with their pension or provident fund will find this suitable.

  • Customers need to be over the age of 18 and are formally employed. They should also belong to the company pension or provident fund.
  • Furthermore, the pension fund, employer, and Standard Bank should have a formal agreement.
  • The withdrawal benefit in the pension fund should be at least R7,000.
  • Also, customers need to be employed for at least a year and have no administration orders against their salary.
  • The loan can be up to 50% the equivalent of the pension fund withdrawal benefit.
  • There are no bond registration costs or delays, or property assessment fees.
  • Finally, repayments are deducted from the salary or wages.

We recently did a review of Standard Bank Investment options. Read more on that here.

Critical Reviews Rating Standard Bank Mortgages – 10 of 10

Standard Bank
Screenshot Affordability Calculator Standard Bank

There is simply no reason to find fault with products that offer customers exactly what they need. These loans are easily accessible, and the low salary requirement means that the loan amounts can start from very low amounts. This opens up the loans to a wider audience, who may not have had the opportunity before.

Furthermore, there is a basic structure to the loans that is followed through across the board. In each segment, customers are taken care of and the products carefully matched to provide them with easy access. The loan percentages are fairly high compared to the other institutions and the 104% loan is especially rare.

Finally, customers have a loan repayment period of up to 20 years. This is less than the other institutions, which allow customers up to 30 years to repay the loan. Although this could mean a reduced installment, it also means that the customer will pay far more over the entire period. The 20-year cap is, therefore, good for the customer in the long run.

Read here to find out why Bank of Ireland missed the mark with their mortgage rating.

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