Home Loans News: ABSA HOME LOANS
50% off your home loans costs
ABSA are actively trying to make home loans more affordable for the lower income groups. In their latest initiative ABSA Home Loans have agreed to cut home loan costs by as much as 50%. Depending on the size of your home loan this could be a saving of R6000.
ABSA initially developed a homeloan product specifically designed for individuals earning between R1 500 and R7 500/pm. Now they launched a number of initiatives that should further assist home owners – 50% discounts on your home loan costs, and a further 5% off any purchase made at JD furnishers.
In an interview on the Moneyweb Power Hour show- Leo Mlambo, General Manager of Affordable Housing at ABSA explained that the aim of the initiative is to encourage the lower income earners to enter into the residential property market.
The 50% discount applies to the conveyancing fees involved in registering you home loan, which is usually about 7% for the total value of your mortgage.
“We have entered into an agreement with black conveyancers where we are going to give them these clients for transfer costs, and they have agreed to cut their costs by 50%. We are looking at savings of between R2 500 to about R6 000,” said Mlambo.
Mlambo explains that the 50% discount will not be built into your interest rate.
“This is a real cut, because I will tell you what happens is that with this product that we launched last year, our managing executive, Gavin Opperman, indicated that we were going to introduce 100%-plus costs, which we are currently doing 110%, that is the costs that are added onto your bond, obviously. But now we are putting money back into people’s pockets quite significantly, because of the reduction in those costs,” said Mlambo
To further encourage the concept of a One-Stop home loans shop ABSA have setup an agreement with the JD Group. ABSA Home Loans customers will get 5% discount, over and above any special that currently exists.
For more information about these and other home loan products and special available, complete this Short Form and a home loan consultant will contact you.