is a home loan aimed at making home finance more accessible to low income earners. That is, those earning a single or joint income of between R1 500 and R6 000 a month, excluding housing subsidies or allowances.
Who can apply for a DreamStart home loan?
You can apply for a DreamStart home loan if:
You earn a joint income of between R1 500 and R6 000 a month and want to buy a home
You are building a new home
You are looking to move to a bigger or better home
We have arranged a life assurance policy to ensure that your loan is repaid should you die. This policy will settle the outstanding balance on your home loan account.
To make your monthly repayments easier, you can pay your instalment through a debit order directly from your account. If you do not have an account, ask your Standard Bank consultant about opening an E Plan account and arrange for your salary to be deposited in this account.
If you pay more than your monthly instalment every month, you will lower the amount of interest you have to pay and will pay your home loan off faster. You will have to apply for this facility and meet certain qualifying criteria.
The following criteria apply:
All homebuyers who do not want to include bond costs in their loan
single or joint income must be R6,000-00 or more a month
permanent employment; and
you need to be 18 years or older
You can apply for an AccessBond facility. This will allow you to withdraw additional funds deposited into your home loan account, over and above your normal instalment.
A debit order or salary deduction is compulsory.
Interest rate options available :
There are two interest rate options available:
These options are explained below.
Variable rate option - Option 1:
You can enjoy the flexibility of a fluctuating rate, linked to the prime lending rate.
The maximum instalment to income is 30 per cent.
Fixed rate option - Option 2:
A fixed rate option ensures that you have assurance regarding your repayment commitment for a pre-determined period of time. This option assists in budgeting for the repayments.
A standard fixed home loan interest rate option contract must be signed.
To learn more about Standard Bank Home Loans, please contact one of our consultants to give you free advice