Home Loans, Bring it back to basicsPosted by Steven Green on Tue, 05 May, 2010 19:30 PMChristina Aquilera says it best. Back to basics.
Well that’s exactly what the banks have done. They’ve brought it back to basics. Before I ramble off about the banks, WELCOME BACK ABSA home loans, we officially have 100% home loans back in South Africa.
SO to give those of you who missed the entire CREDIT CRUNCH a little rundown, South Africa has not had 100% home loans since 2008.
This move by ABSA bank comes 6 months after Standard Bank home loans opened up the doors to their own banking clients offering them 100% home loans if they applied directly with their own bankers. ABSA however seem like they’ve taken this once step forward and offered this via Bond Origination channels i.e. Wizard Midrand (That’s us) allowing ONLY ABSA transaction clients to offer the 100% bonds to.
According to resources, this is open to all ABSA clients, but I have a feeling this 100% home loan offering will be for first time buyers only….
Either which way, congratulations to the banks in South Africa, for keeping their cool, sticking to their guns and giving us South Africans the opportunity to get back into the property market.
VIVA ABSA home loans… let’s get back to basics…
Residential ABSA Home Loans Fixed Interest Rates
We are pleased to advise you of the launch of ABSA’s extended Fixed Rate Options. Customers are now able to fix their Monthly Home Loan Repayment for up to 10 years.
These fixed rates are available to existing and new customers with loans of up to 100%. The impact of risinginterest rates is starting to have a marked effect on disposable income and confidence levels amongst homebuyers this feature goes a long way in addressing this issues. Customers now have the ability to plan ahead for the next ten years.
Customers have the added option of only fixing a portion of the loan by making use of Absa’s Multiplan account offering. A customer may choose which portion of the ABSA loan should be calculated at a fixed rate and which portion should be calculated at a variable rate. The customer would therefore experience a reduced impact on the monthly installment if the variable rate was to increase, as a portion would remain fixed. (Please note that MultiPlan can only be set up via a new loan, further advance or re-advance application process).