Using home loan finance for your solar installations
Category Property Tips
The opportunity to install solar in private properties has prompted the main banks to offer finance and buyers can now include funding for a solar system when they apply for a home loan.
Here is what the banks are offering:
First National Bank - a loan limited to 15% of property value with a minimum loan value of R50,000. In the case of 100% bonds, the maximum that can be borrowed is R200,000. A solar quote is not needed, only an estimated cost. The funds can be accessed on registration of the bond.
RMB Private Bank - a loan limited to 15% of property value with a minimum loan value of R50,000 and for 100% bonds, a maximum loan of R200,000. A solar quote is not needed, only an estimated cost. The funds can be accessed on registration of the bond.
Standard Bank - a loan to the value of 70% of the solar costs which will be paid to the solar installer and a solar quote is required. The funds will be provided on registration of the bond.
Nedbank - assessed depending on the required. A solar quote is required, and the funds will only be paid once the solar installation is complete.
ABSA - assessed depending on the required. A solar quote is required, and the funds will only be paid once the solar installation is complete.
Adding solar to your property will not only add value to your life and property, but will reduce your electricity costs. It will also add to the marketability of your property in the event of selling.
There is also a once-off tax rebate available to residential homeowners of 25% of the cost of a solar system installation, up to a maximum of R15 000. This applies to this tax year only.
In terms of the market, while we are seeing an inevitable cooling off period setting in, the upside of being a seller in Cape Town is that you are two to three times more likely to find a buyer compared to other metropolitan areas.
Home is our Story and property our passion. We continue seeing strong interest in the property market with ready buyers, but sellers do need to be mindful that the market has shifted more in favour of buyers. If you would like to know more about the opportunities in the market, please feel free to contact us at any time.
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Author: Gina Meintjes
