What is the size of the building loan that I can afford ?

To save you time and effort when looking for your dream house it is to your benefit to know what you can afford. Use this calculator to determine the amount that you qualify for.
 

What are the costs charged by the banks when I take up a building loan ?

In general the banks charge a valuation-, initiation-, and monthly administration fee. To ensure that you are fully aware of these additional costs, use this cost calculator to determine what these costs would amount to.
 

What are the legal costs that I have to pay when building a home ?

The legal costs (registration and transfer costs) are normally to be paid in cash to the attorney. Please use our calculator to enable you to make provision for these costs.
 

What are the interest rate options available to me ?

Please look at the interest rate options available and choose the option that suits your requirements best.
 

Will I be able to wheather increases in interest rates?

By using our calculator we can offer you advice on planning for such eventualities.
 

What is needed to apply for a building loan ?

Over and above the normal application form, and supporting documentation, the following is needed when applying for a building loan:
 
Provisional or Approved Plans
Architect or drawer's plans of home to be built. The banks' assessor uses the plans to determine the value of the home to be built and also have to assess the plans before any payment is made.
 
Detailed Tenders and Quotations
This is a specification (in detail) regarding the technical specifications of materials to be used to build the home, the bill of materials to be used and specification of quality of finishes to be used. The bank's assessor uses this document to assess the value of the home to be built.
 
Minimum Specifications and Schedule of Finishes/Variations
An undertaking by the building contractor to adhere to the minimum technical specifications (regarding inter alia trenches, excavations, soil conditions, foundations footings, concrete and masonry, drainage disposal and control etc.) as laid down by National Building Regulations, local Authority By-laws and the Bank. Although this document is not required for granting purposes, it is needed for valuation and before any payments will be made.
 
Waiver of Builder's Lien
The building contractor has the right to retain the keys of a building until he has been paid the full contract price. This right is called the right of the builder's Lien. Due to this right, the builder's claim will take priority over the bank's claim in a case where the home buyer does not meet his/her financial responsibilities and/or withdraws from the transaction. Banks therefor require the builder's right of retention to be waived in favour of the bank (in writing); thereby making the bank the preferred creditor before any payment will be made.
 
Copy of Contractor's NHBRC Certificate
NHBRC stands for National Home Builder's Registration Council. The NHBRC ensures that builders adhere to its quality standards, and that buildings erected are free from major defects, thereby minimizing the risk of the home buyer and the banks. The cost for NHBRC enrollment is 1,3% of the contract price and is shown on the tender seperately. The banks insist that all building contractors should be enrolled with the NHBRC before a building loan will be granted.
 
NOTE:
NHBRC enrollment is not required where:

• Any residential structure (home) is to be constructed with less than 75% of the floor area designed for residential purposes.
• Homes are built by bona fide owner builders.