Nedbank Building Loans : Step-by-Step Guide to Building Your Dream Home

Last Updated on November 27, 2023 by Elidge Staff

Building Your Dream Home: A Step-by-Step Guide with Nedbank Building Loans

Building a home can be a daunting task, especially when it comes to financing. However, with Nedbank Building Loans, the process can be a lot easier. In this step-by-step guide, we will take you through the process of getting a building loan with Nedbank and building your dream home.

Nedbank Building Loans : Step-by-Step Guide to Building Your Dream Home

Step 1: The Building Loan is Granted

Once your building loan has been granted, Nedbank will instruct an attorney to register the mortgage bond. The attorney costs will be for your account.

Step 2: Documents from the Builder Required by Nedbank

To ensure the building process goes smoothly, Nedbank requires specific documents from the builder. These include the builder’s all-risk insurance policy, National Home Builders Registration Council (NHBRC) unit enrolment certificate, NHBRC registration certificate, minimum specifications and waiver of lien, building contract, approved building plans, schedule of finishes, and survey general (SG) diagram.

Step 3: Building Loan Registration

You will be informed by both the registration attorney and Nedbank Home Loans when your mortgage bond has been registered.

Step 4: Interim Interest

Step 5: Progress Payments

Progress payments by Nedbank to the builder will start after the mortgage bond has been registered. Nedbank will make four progress payments to the builder, usually at 25% intervals. Progress payments will be based on the percentage completion of the building, and Nedbank will send a property assessor to assess the progress of the build from time to time. To request a progress payment, you can log onto the Nedbank website or visit any Nedbank branch.

Step 6: Post-Registration Documents

The builder must obtain the engineers’ certificates and submit them to Nedbank at various progress stages for the foundation, stairs, slab, and roof.

Step 7: Documents Required

Before the Final Payment Before the final payment is made, you will need to provide Nedbank with an electrical compliance certificate, an occupancy certificate, and your signed final request for payment form.

Step 8: Your Home is Complete

Congratulations! You have reached the final step. Before you take occupation of your new home and sign the final request for payment form, we recommend that you request a walkthrough of the property with the developer. The interim interest debit order will be converted into a full installment debit order in the month following the final payment.

Building your dream home can be a seamless process with Nedbank Building Loans. By following these simple steps, you can have your dream home in no time.

Here are some potential FAQ’s based on the text provided:

What documents are required from the builder for a Nedbank building loan?

The builder needs to provide a builder’s all-risk insurance policy, builder’s National Home Builders Registration Council (NHBRC) unit enrolment certificate, builder’s NHBRC registration certificate, minimum specifications and waiver of lien, building contract, approved building plans, schedule of finishes, and survey general (SG) diagram.

How are progress payments made by Nedbank to the builder?

Progress payments are typically made in four installments, usually at 25% intervals, based on the percentage completion of the building. Nedbank will send a property assessor to assess the progress of the build from time to time. To request a progress payment, you can log in to the Nedbank website or visit any Nedbank branch.

What happens after the mortgage bond is registered?

Interim interest on the outstanding balance is payable on the first day of each month following registration. Interim interest is payable monthly per debit order from the mortgage bond registration date. Progress payments to the builder will also start after the mortgage bond has been registered.

What documents are required before the final payment is made?

The builder needs to provide an electrical compliance certificate and occupancy certificate. You also need to sign a final request for payment form.

Can I request a walkthrough of the property before signing the final request for payment form?

Yes, it is recommended that you request a walkthrough of the property with the developer before taking occupation and signing the final request for payment form.