My Home From ABSA Bank Home Loans

 

The My Home product – for clients earning up to R15 142 p.m. (Joint Gross Household Monthly Income)

 

 

Features and benefits

·         Loans up to 110% Loan to Value (LTV) and maximum 80% Risk to Value (RTV)

·         A training course is mandatory for all customers enjoying the benefit of a CRIS guarantee or where the loan exceeds 80% of the purchase price.

·         Credit Life Policy – Home Loan Protector Plan

·         30% Collateral Replacement Indemnity Scheme (CRIS)

·         Maximum loan size determined by affordability

·         Repayment term up to 30 years

·         Fixed rates are available up to 10 years

·         No further advances will be allowed under the CRIS proposition i.e. 1st bonds only

 

Qualifying criteria

 

·         Earn ? R15 142 p.m. gross per month (either as a single or joint monthly household income),

·         In possession of a South African ID document

·         Show proof of regular income

 

Amount of loan

 

·      Maximum loan size determined by affordability (nett disposable income)

·         When buying an existing property the loan amount is paid to the seller on registration. If your new home is being built, portions of the loan are paid out to the builder at different stages in the building process.

At the same time, there are other costs charged to your home loan account:

·         Initiation fee – this is a fee charged by the Bank for setting up the home loan. This is a once-off fee.

·         Administration fee – this is a monthly administration fee which is included in your monthly repayment amount.

 

 Borrowers Education Process

 

·         Assistance required from the Attorney Panel to streamline the process with reference to Borrowers Education required – as specified under the special conditions on all My Home loan applications.

·         No action required by the consultant

 

Collateral Replacement Indemnity Scheme (CRIS)

 

·         The Collateral Replacement Indemnity provided by HLGC (Home Loan Guarantee Company) is a form of insurance against losses that may be sustained when selling a property in execution i.e. when the property is sold as a result of the customer no longer repaying their loan.

 

·         CRIS is a mechanism to provide finance to customers who do not have a full deposit (or other collateral  security) for the purchase of a property.

·         CRIS is available to applicants earning a joint gross monthly household income of    

      R15 142 or less, and who qualify for a home loan in terms of Absa’s normal   

      lending criteria.

·         The indemnity will provide cover for a period of five (5) years

·         My Home loan applicants who require CRIS must undergo Borrower Education

·         Borrowers Education compulsory for all those customers with loans in excess of

      80% of purchase price

·      Customers should only attend the Borrower Education after the loan has been  

      final granted.

  

Calculation of CRIS

Example no.1

 

bearing in mind that our Risk to Value (RTV) may not exceed 80%

 

  • Purchase Price – R350 000
  • Loan amount requested – R350 000 (100%)
  • R350 000 x 80% = R280 000
  • CRIS guarantee = R70 000 (20%)
  • Absa’s exposure is limited to R280 000 and the RTV is limited to 80%  

Example no.2

  • Purchase Price – R350 000
  • Loan amount requested – R385 000 (110% LTV)
  • R350 000 x 80% = R280 000
  • CRIS guarantee = R105 000 (30% – maximum guarantee)
  • Absa’s exposure is limited to R280 000 and the RTV is limited to 80%

 

To Apply for your ABSA bank Home Loan please go to www.mortgagepluscc.co.za

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