Banks in South Africa

Locally controlled banks (registered in terms of the Banks Act)

Absa Bank Ltd – now a foreign controlled bank www.absa.co.za
African Bank Ltd www.africanbank.co.za
BoE Private Clients (a division of Nedbank) www.boeprivateclients.co.za
Bidvest Bank Limited www.bidvest.co.za
Capitec Bank Ltd www.capitecbank.co.za
Fairbairn Private Bank (a division of Nedbank) www.fairbairnpb.com
FirstRand Bank Ltd www.firstrand.co.za
First National Bank (a division of FirstRand Bank) www.fnb.co.za
Imperial Bank Ltd (a subsidiary of the Nedbank Group) www.imperialbank.co.za
Investec Bank Ltd www.investec.com
Marriott Corporate Property Bank Ltd. www.marriott.co.za    
MEEG Bank Ltd www.meegbank.co.za
Nedbank Group Ltd www.nedbankgroup.com
Nedbank (a division of the Nedbank Group) www.nedbankgroup.com
Old Mutual Bank (a division of Nedbank) www.oldmutual.co.za/ombank
Peoples Bank (included in Nedbank) n/a
Go Banking (a division of Nedbank in association with Pick ‘n Pay) www.gobanking.co.za
Rand Merchant Bank (a division of FirstRand Bank) www.rmb.co.za
Regal Treasury Private Bank Ltd (in liquidation) none
Rennies Bank Ltd (now a division of Bidvest Bank) www.bidvest.co.za
RMB Private Bank (a division of FirstRand Bank) www.rmbprivatebank.co.za
Sasfin Bank Ltd www.sasfin.co.za
Standard Bank of SA Ltd, The www.standardbank.co.za
TEBA Bank Ltd www.tebabank.co.za
Wesbank (a division of FirstRand Bank) www.wesbank.co.za

Foreign controlled banks (registered in terms of the Banks Act)

Absa Bank Ltd (a member of Barclays Bank Group) www.absa.co.za 
Albaraka Bank Limited www.albaraka.co.za
Habib Overseas Bank Limited www.habibbank.com 
HBZ Bank Limited (a subsidiary of Habib Bank) www.hbzbank.co.za
Islamic Bank Limited (in liquidation) none
Mercantile Bank Limited www.mercantile.co.za
South African Bank of Athens Limited, The www.bankofathens.co.za  

This information was supplied by Mortgage Plus www.mortgagepluscc.co.za

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Home repos falling; small part of total

The number of houses that banks have had to repossess due to their owners defaulting on loans, has dropped.

The price categories of most repossessed houses differ at the large banks.

At Nedbank the average price of repossessed houses ranges between R300k and R400k with very few boasting price tags of R1m or more.

First National Bank (FNB) and Absa say some people in all price categories are struggling to pay their loans. Most repossessed houses at FNB resort under the R800k to R900k price category, while “houses with big loans” are problematic for Absa.

Nedbank currently has 1,800 repossessed houses, but they represent less than 1% of its total home loans.

At Absa the number of repossessed houses represent less than 0,01% of all home loans. FNB could not release its figures as it is in a closed period before the announcement of its results. Standard Bank chose not to comment.

The banks attribute the drop in the number of repossessed homes to their efforts to help homeowners to keep their houses or helping them to sell them.

Luthando Vutula, executive manager of Absa Home Loans, ascribes the decrease in the number of repossessed homes to better economic conditions.

However, FNB and Nedbank are of the opinion that consumers are still under pressure.

Jan Kleynhans, CE of FNB’s home loans division, says consumers are still under pressure due to their big debt burden and unemployment.

The banks are doing their utmost not to lose too much money when repossessed homes are sold.

The best way to sell the houses is at private auctions.

André Potgieter from legal collections at Nedbank says the bank will only buy houses back if the reserve price set by the bank is not achieved at an auction. It is also the case with FNB.

Up to 80% of the property’s value is usually achieved at auctions, says Potgieter.

Vutula says “less than 1%” of repossessed homes are currently being sold as people are looking for bargains. “Affordability remains a problem due to the fragile economy.”

Kleynhans says the majority of repossessed homes at FNB do find buyers.

Potgieter says the bank helps clients with repayment options if they go into arrears.

The loan period is sometimes extended when someone is in deep trouble.

The extension of the loan period is equal to a new loan agreement with which the stipulations of the National Credit Act (NCA) is taken into account. It means that some people don’t qualify for a new agreement.

Nedbank currently grants one out of every three home loan applications.

Some of the reasons why banks reject applications for loans include the fact that the applicant is on a credit bureau blacklist or that he won’t have enough money to meet his other obligations if the loan is approved. – Adri van Zyl, Sake24

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za