ABSA and Standard Bank Launched First-Time Buyer Campaigns - Loans up to 105%

The reserve bank has just announced a further 75 basis points increase in the interest rate (0.75%). This means that the repo rate is now 6.25%, which brings us back to pre-covid levels. The prime lending rate is now 9.75%. 

Practically speaking this means on a bond of R2 000 000.00, the bond repayment used to be R17 994,52 over 20 years with the prime lending rate at 9%, whereas it will now be R18 970.34. 

Both ABSA and Standard Bank has launched their First-Time Buyer campaign - a very good initiative indeed - and so necessary given the interest rate hike cycle we have been encountering during the last few months.

Standard Bank:

First-Time Home Buyer Campaign which will commence tomorrow, 21st September 2022 and will run through to 21st December 2022. 

For the purpose of this new campaign, the First-Time Home Buyer definition has been expanded to where at least one applicant is a first time Home Buyer. 

The Campaign Offering consists of an automatic 50% discount in the bond registrations costs and an opportunity for 5 lucky winners to have their outstanding home loan balance settled up to the maximum value of R1 milliion.

The qualifying criteria, terms and conditions and campaign exclusions:

The Offer

50% discount of the bond registration costs

5 lucky winners will have their outstanding home loan balance settled to the maximum value of R1 million

Let's look at 2 examples to illustrate what we mean:

1.            If the outstanding balance is R800 000 an amount of R800 000 will be paid into the bond account

2.            If the outstanding balance is R1 200 000 an amount of R1 000 000 will be paid into the bond account

Qualifying Criteria:

•  New Loan applications captured (first time capture) during the campaign period between 21 September 2022 and 21 December 2022
• The bond must be registered on or before 30 June 2023
• At least one applicant should be a first- time home buyer
• The loan amount does not exceed R3 million

Terms and Conditions:

• Qualifying customers will automatically be entered to the draw, subject to the bond being registered on or before 30 June 2023
• Should the client wish to access the funds they will need to open a Standard Bank transaction account and apply for an AccessBond
• All grants that meets the campaign conditions will be allocated based on the current Attorney allocation tool
•  If the Campaign Attorney discount is accepted, any other campaign with Attorney discount will no longer be available to the customer
• New Developments will not qualify for the 50% attorney discount as the costs are already built into the purchase price, however, will still be eligible for the cash prize draw
• Draw date anticipated for 1 August 2023
• The customer could qualify for 105% LTV up to a maximum of R1.8 million

Campaign Exclusions

• Vacant land only
• Juristic entities
• Business mortgages
• Small Holdings
• Non-Residents and Foreign Nationals
• Staff Loans

 Campaign Inclusions

• Building Loan Packages in New Developments, Sectional Title Units and Freehold Properties will qualify

ABSA

Absa Bank's new 105% First-Time Home Buyer Proposition which will commence today, 22 September 2022. 

With the new Absa Offering, First Time Home Buyers can now apply for up to a 105% bond with a maximum purchase price of R1 800 000 and enjoy a 50% Bond registration discount.

What's new in the First Time Home Buyer proposition?

1.            105% Home loan definition expansion

•  First Time Home Buyer can apply for up to a 105% bond with a maximum purchase price of R 1 800 00

2.            Attorney discount

•  50% Bond registration discount for all first-time home buyers

3.            The new MyHome income band has been adjusted

•   All first-time buyers earning less than R27 200 (gross monthly income), will have free access to borrower education homeownership training (also available digitally)

4.            Conditional Concession offer of 0.25%

All first-time buyers will receive an additional -0.25% concession on their variable interest rate on condition that they:

•  Open a new Absa cheque account (Gold Value Bundle or Premium Banking Account or Private Banking Account), and
• Load their home loan debit order against the Absa transactional account, and
• Deposit at least R3 000 into their Gold Value Bundle or Premium account or R35 000 into their Private banking account monthly, and
•  Keep the home loan account up to date

5.            Access to insurance products to protect your family, property and belongings

6.            Customer earns between R3 501 to R22 000 as single or joint gross monthly household income, may be eligible for a government housing subsidy under the Finance Linked Individual Subsidy Programme (FLISP)