Ah the new buyer I see. Congrats for even taking the step into the property market
Word of GOOD advice - a building bond is not a route you should be taking unless your open access free cash flow is significant. Very simply. The difference in cost of approved plans and end value will not be paid by the bank. Progress payments are made at specific places in the project eg, foundation, wetworks, structuring, electric compliance plumbing etc. The difference in value (and there always is) is effectively paid by you not through the facility. Further the 70% building bond mentioned above is just about a spot on comment overall. So have 30% in deposit or base to cover the difference in finance AND further cash flow for any differences in project completion. Advice don't touch OR go the development on site plan where they have an effective "turn key".You know, those developments where you apply for a bond, approved BUT there is no payout until completion of the property thus the risk is on the property developer. If its the vanilla buy a stand and the house. The bank I work for atleast will only do 50% of the land value and 70% of the TOTAL contract building plan further noting that the plan must be in total completion. Cannot have multiple different suppliers of the building process. Contract must be an all inclusive package contract
If however you are doing classic (I like this house let me apply). My advise. Apply for a bond at 100% finance Ie you are a first time buyer. If the area is good and the consultant actually knows what they are doing you can get 100% finance (ive not only applied before, got approved and I am in credit. Further to this once approved you can plow BACK the 10% you had as a deposit into the access facility within a month or two after registration and use for the registration costs. This will also from a 20 year cycle dramactically reduce your amortisation schedule . Not going to do the math for you but your curve dramatically changes with 10% deposit.
Happy house hunting. Note - in the market currently Nedbank are actually balanced in terms of property portfolio. Absa lossed a huge market share and are contrary to the service very aggressive on the rate side. Standard bank you can haggle if you mention I will move all my things to. FNB are generally not that great unless you already bank with them otherwise they are ÖK". Id start with Absa and nedbank and then move onto FNB and standard. Leave SA home loans until last ONLY because of the fact that they are not a bank and do not offer access facilities as far as I am aware or for instance interest only amortisation eg single facility
