Home Loans News: SA Home Loans
Speaking in an interview with the Business Report, Kevin Penwarden, chief executive of SA Home Loans explains how his company remains competitive in a growing market.
SA Home Loans grants mortgages based on the Johannesburg Interbank Acceptance Rate (JIBAR) which is similar to the mortgage rate normal banks use to issue home loans.
Until recently SA Home Loans have enjoy the advantage of a JIBAR rate which has been 2% below the prime lending rate used by most banks. The JIBAR is now only 1.5% below prime which means that the Banks, who are able to offer their clients up to 2% below, are starting to attract many more clients.
When asked how SA Home Loans plans to remain competitive in the mortgage industry, Penwarden explained that through a “number of competitive, value-added products, backed up by choice and amazing service†SA Home Loans are able to ensure a strong business model.
As the number of mortgage lenders in South Africa increase the competition for market is growing among the Banks but Penwarden remains unconcerned about this and is strong focused on the company’s plan to “to be the consumer champion and to offer alternatives. We talk about quality products, service and profitability – not market share.â€
What terms and conditions apply SA Home Loans bonds?
Sa Home Loans offer a minimum loan of R140 000 and a bond of up to 100 percent. The lowest rates apply if clients have 20 percent equity in their homes.
Read the full interview – HERE
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