Windhoek
Over the years you have turned your house into a home by changing your property to reflect your own and your family’s values. Each corner and each square meter have become your refuge and you have created your own unique living space.
Yet, nothing ever stays the same and through the years your needs change, hence your property has to change with you. Be it and extra room for a new family member or just a general facelift to make your house look trendy again.
“It is a known fact that a house that is well kept will fetch a higher price than one that has been neglected. Thus, whether you need to expand, renovate or simply just maintain your property, Bank Windhoek can help you to ensure that your dream house does not become a nightmare,” says Nancy McNab, sales manager at Bank Windhoek’s property finance department.
Bank Windhoek can assist you by giving you access to finance through a re-advance option. A re-advance is the funds that you have already repaid on your home loan. Every instalment consists of an interest part, capital and sometimes insurance, thus over a period of time the balance of the loan will reduce to less than what was initially taken up.
The difference between the original loan amount/registered amount and outstanding balance, will be the re-advance amount.
“Clients under the housing scheme loans will use this option to either repay their subsidies overpaid to the client by the ministry, due to interest rate changes, or to settle outstanding municipal accounts,” says McNab. In some instances clients use a re-advance to do small renovations to their property.
If you would like to make use of the re-advance finance option, then you need to complete a re-advance application form, new credit checks will be done. For this the bank needs proof of identity, proof of income and your latest municipal bill. Then the bank will do the necessary calculations to determine whether there is an available amount. All securities must be in place and the bank normally also requests a re-valuation on the property.
Bank Windhoek’s re-advance option consists out of two categories. First there is the further advance, normal reduction on an account due to instalments, but will most probably mean that the instalment will increase slightly due to the reduced term. Secondly, Bank Windhoek has the repayment fund option, whereby a client can be refunded and the funds that they have paid additionally on top of his monthly instalments into his home loan account.
“Should a re-advance/repayment refund be considered, the monthly instalment will most probably not increase afterwards. All re-advance payments are subject to approval,” McNab concluded.