Standard Bank hike home loan fees by over 500%

Home Loan News: Standard Bank, Fees

While interest rate cuts have helped to free up some extra cash for many Mortgage Bond holders, Standard Bank have used this opportunity to get their hands on some it.

The bank recently announced that the administration fees of many of its home loan clients will be hiked, starting 1 June 2009.

It’s well known that Standard Bank have been struggling following the economic downturn, and this recent admin fee increase may help to recover much of its loses.

Speaking on Moneyweb’s SAfm Market Update, head of Standard Bank Home Loans, Rob Katz said the price you pay will depend on when you took at your home loan.

“It’s dependent on when you took the loan out with us. So if you took the loan out before the NCA [National Credit Act] came into being, that was before June ’07, you’ll now be priced R35 a month. If you took it out after June ’07, you could be priced either at R42 a month or at R57 a month.

“So what I mean by that is if you have insurance with us, home-loan protection and homeowners’ cover, we will then charge you a service fee of R42 a month, but if you have neither of them we will then charge you R57.”

Standard Bank blames the home loan administration fee hike on internal costs increases.

[via realestateweb]

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