Our Lenders

Home Loan Information

Like This Site

Absa Bank Home Loans

Variable Interest rate

Home Loan Options and Interest Rates

The variable interest rate is the conventional fluctuating rate, which is based on the prime lending rate as determined from time to time.

Features

Fluctuations in the prime lending rate would influence this interest rate option.
The interest rate option cannot be fixed for a pre-determined period.

Benefits

You can switch from this option to another rate option at any time.
Your interest rate is individually determined - considering your personal details and property details.

Fixed Rate

A fixed interest rate is a contracted rate between the bank and the borrower for a pre-determined period of time.

Features

The rate will be fixed at a pre-determined rate for a specified period.
The quoted fixed rate will not be influenced by fluctuations in the mortgage prime lending rate.
The fixed rate option may not be terminated prior to the expiry of the agreed term.
The variable interest rate option can be applied once the fixed rate option expires as per the agreement.
The fixed rate terms will be evaluated from time to time.

Benefits

Protects you against fluctuations in the mortgage bond rate.

FastForward

FastForward is an innovative home loan account management option that allows you to automatically increase your home loan installments on an annual basis. This annual increase will result in the rapid reduction of outstanding balances on your home loan, resulting in significant interest savings to you.

Features

You can choose between and annual percentage increase, annual rand amount increase or select a period over which you would prefer to pay the loan.
It allows you to pay your home loan over a shortened term.
Normal home loan application criteria are applied to FastForward.

Benefits

You decided what you can afford year by year.
You can amend or even revert back to your original loan obligations with ease and no no additional cost.
Simply apply for FastForward with no legal documentation.
If you make use of this option, you will enjoy significant interest savings.
You will have access to advance payment funds via FlexiReserve.

FlexiReserve

FlexiReserve allows you to withdraw the funds available in your Home Loan account when you need to, transacting via Absa Internet Banking, ATM's, telephone Banking or any Absa Branch nationwide.

Features

You have three options:

The Advance Payment option, where you can withdraw any additional funds deposited into your home loan over and above the required minimum installment.

The Comprehensive Payment Option, where you get comprehensive access to available home loan funds. With this option you can withdraw the difference between the outstanding balance on your home loan and the total loan that was granted to you.

Should you decide not to use the FlexiReserve facility but wish to draw the amount available on the mortgage in a once-off transaction, it can be treated as a further advance.

Benefits

Your home loan will provide access to available funds at the preferential home loan rate.
With the comprehensive option, the more capital you have paid into your home loan, the more becomes available to you.
Additional payments do not affect the monthly installments on your home loan (unless you request otherwise).
Any surplus funds deposited over and above your regular installments effectively save you interest on your home loan.
You have immediate access to available funds via the internet, telephone, ATM's or branches.
Available funds in your home loan can be used for any purpose, from home improvements and education to dream holidays.

MultiPlan

MultiPlan is an Absa-unique home loan option that gives you the freedom to structure your home loan account into a number of separate accounts.

Features

The MultiPlan option consists of a Primary account (your original home loan account) with one or more secondary accounts.
Each MultiPlan Secondary account can have its own :
Repayment term (not exceeding the Primary account)
Statement
Interest rate Options
Payment method for easy money management
FlexiReserve Facility
Designation, for example "New Kitchen Account"

Benefits

You can apply prudent, convenient home loan account management with separate account numbers and statements.
You have access to short-term finance at preferential home loan interest rates ( as and when you have equity available in your home loan ).
Save interest by consolidating debt, since the home loan interest rate charges are lower than most other types of finance.
Link your Primary home Loan and Secondary Multiplan accounts to FlexiReserve and deposit additional funds as well as withdraw available funds whenever you need it.

Further Advance

A Further Advance is taken up when there is sufficient security value in your property to cover the further amount. This means that your property must have increased in value to allow for the registration of a further bond over the additional value.

Features

Easy application online, by telephone banking or at any Absa Branch.
The amount advanced can be structured into a MultiPlan Account.

Benefits

A Further Advance is a cost-effective way to finance other purchases, since home loan interest rate charges are lower than most other types of finance.
Your Absa Home Loan can finance just about anything.
You can link your home loan to FlexiReserve, and it allows for convenient accessibility to available funds.
In order to avoid having to pay legal fees when applying for a Further Advance, Absa advises new customers to register up to 50% higher bonds on new properties at the inception of the account. This will allow you to take up additional funds when your property increases in value, without having to register a further bond.

Subscribe to our Newsletter

Online Application

More Absa Bank Information

Testimonial