In the News: ABSA Home Loans
Absa, one the largest providers of SA Home Loans, has launched a brand new Gold facility option. Designed to ease debt consolidation. This new mortgage product is a home loan and a cheque account in one, which can be accessed through ABSA internet banking. The Gold facility has a single management fee that covers everyday transactions.
As most investors will know, one advantage of having a home loan is that you can consolidate your credit card and other debts into your mortgage account. Interest rates charged on home loans are much lower than other accounts and in this way you can save thousands in interest charges.
Says Rodger Dunn, managing executive of the Absa group’s Retail Banking Services: “Increased property values mean that customers can save a substantial amount of interest, just by consolidating their debt into a flexible Absa home loan. It’s financial harmony and, we certainly hope, music to many consumers’ ears.
The benefits of the ABSA Gold single credit facility is that it offers a competitive ABSA home loans interest rate (which is much lower than any credit card rate) and a single monthly banking fee.
Jaco Grobler, managing executive of Absa Group Home Loans, says: “The Gold facility has been designed with consumer interests and flexibility in mind. Many people are taking on extra credit at far more expensive rates than an Absa home-loan rate, without necessarily realising that they could use the capital available in their home loan.
“It therefore makes sense for Absa to take the lead in championing consumer interests relating to wholesome credit management. Consumers can now make even more use of their fully secured asset and utilise the equity available in their home loan. All round, it’s value-for-money, cost-effective credit management.”