Download payment holiday - BondPlus Online

Lead Promotion – Trade Period 4:
Absa Home Loans offering
Sales Toolkit
Lead Promotion
Positioning
Absa Home Loans will be launching a positioning advertising campaign to
position Absa Home Loans as the “enabler of customer dreams”
Home Loans Criteria
Market
Anyone who :
Earns a single or joint income of more than R1500 per month
Is formally or informally employed
Is above 21 years of age and or
Is in possession of a title deed registered in their name or who are in the process of
purchasing a property
Potential customers may already own a home (selling and or buying again) or may
be in the market to purchase a home as first time or secondary buyers
This sales promotion includes all new home loans,
further advances and building loans
Absa Home Loans Offering 1
MyHome Product Offering Overview
Market
Customers with a monthly gross income of R1 500 to R7 500 per month (joint or single)
Note: Proof of earnings of an uninterrupted monthly income for a minimum of 12
months is required
Features
110% loans including the transfer fees, bank fees, registration costs, etc
Up to 50% discount on bond registration costs at selected panel of attorneys
Option of a fixed interest rate for 5 years
Assistance provided to establish a financial track record with a Target Save account,
should the customer not have an existing record. Customers interested in this benefit
will need to apply at any Absa branch
Borrower Education training for MyHome customers at no cost
Furniture and Appliance discount of at least 5% over and above any price cuts already on
offer at JD Group Stores when taking up a furniture and appliance loan
MyHome Life Policy
Notes
Life cover is a condition of the MyHome product offer for single and joint applications
The MyHome Life Policy offers life cover which includes permanent and temporary disability.
AHL will ensure that the features and benefits of the policy is shared with customers
on confirmation that the Absa loan terms and conditions have been accepted by the
source
Cession of an existing policy to the MyHome Life loan will be considered if it complies with
the requirements
Absa Home Loans Offering 2
Customers can choose to take a “payment holiday” for up to
three months!
3 Month Payment Holiday Overview
Market
Existing Customers: With an outstanding balance or new loan to value not exceeding 100%
of the loan to value
New Customers: All loans granted with loan to value of 100% or less
Features
The Three Month Payment Holiday allows customers to skip from between 1 to 3 months
consecutive repayments
The additional funds will enable them to use the funds for an emergency, furnish their new
home or use it for a holiday over the festive period.
Example :
Registration of a bond usually takes between 2 -3 months. If a client applies for a home loan and takes up
the payment holiday anytime from 1 August to 14 Oct, they will have a repayment holiday over the festive
period which is typically when customers are in need of additional funds
Note:
New Customers: the payment holiday can be made effective on the first repayment due after registration
Existing customers: Must allow 15 days prior to the due date of the next payment
3 Month Payment Holiday Conditions
Conditions
No arrears in the last six months or since registration (if registration period is less than six
months)
The option can be selected over 1, 2 or 3 consecutive months (max 3 months)
The deferred period must expire by no later than 31st May 2007
Access to Flexi Reserve will be frozen whilst the Payment Holiday is being utilised
Customers can only apply for the payment holiday once
MyHome customers with CRIS or collateral security are excluded from this offer
3 Month Payment Holiday Process
Process
External Sources – New and Further Advance Customers – Payment Holiday option selected
Complete the Home loan application form
Kindly indicate by clearly stating ‘Payment Holiday option’ on the faxed coversheet with your
supporting documents
Submit application form with the required supporting documents as per usual
Notes
To ensure that the Code of Banking Practice is adhered to, the customer must be informed of the following:
The customer will still be liable for the repayments skipped – after the last deferred payment month the
repayment will be re-calculated on the new balance over the loan term
Interest will continue to be calculated on the daily outstanding balance, from transaction to transaction and
capitalised monthly
The repayment term of the bond will be extended by the number of months selected to defer repayment
The customer may choose not to extend the term of the loan, if so
Delete clause on application form that acknowledges extension of term and get the customer’s signature
This clause will also have to be manually added on the coversheet if client does not wish to extend.
Note that this will result in an increase of monthly repayments
The repayment will increase to a certain degree once the payment holiday is complete
The Customers’ FlexiReserve option will not be available whilst on holiday payment, as there will be a
decreased amount available. It is advisable, therefore, to advise the client to use their Flexi Reserve prior to
application
The customer needs to make arrangements to postpone/suspend payments such as stop orders, Cheque or
transfers
The customer needs to reinstate repayment arrangements once the holiday period expired (if the customer is
not paying via a debit order)
Customers paying their Absa Home Loan repayment via a debit order, Absa will suspend/reinstate the payment
instructions
Inclusions and Exclusions for the 3 Month Payment Holiday
Products Included
Products Excluded
Individual accounts
Companies
Joint accounts
Close Corporations
Staff accounts
Trusts
Group Scheme customers with no collateral
security
Any home loan with collateral (including CRIS)
MyHome customers without CRIS (or other
collateral security)
Further advances
Ordinary loans
Vacant land
Residential property
Accounts with/without FlexiReserve
First Time Home Loans (balance reduced to 100%
LTV or less)
110% offer, where reduced to 100% LTV or less
Bonds under cancellation
Home Loan accounts in arrears (including legal
accounts)
Non residential property
Platinum One (Private One)
Salary deductions
Employee subsidy
Absa Home Loans Offering 3
Fixed rates are usually above prime, Absa Home Loans offer
to fix the rate at prime is a differentiator !
Fixed Rate at Prime - Overview
Market
Includes all NEW ordinary home loans and building loans (once they have been
paid out)
Features
Customers have the option to choose a variable or a fixed rate option
Variable rate is linked to the prime mortgage lending rate and usually move
with changes to the prime lending rate
Fixed rate is an agreement whereby you agree to maintain a certain interest
rate for a certain period, regardless of movement in the prime rate
During this Trading Period 4, Absa will be offering a fixed rate at prime for 12
months - to new customers only.
The rate will be fixed at the prime rate applicable at the time of signature
NOTE:
This special offer will apply regardless of the Loan-to-value (LTV) percentage
Summary on Home Loan Offers
The MyHome home loan enables people who earn between R1500 and R7500 to qualify for a
Home Loan or a Further Advance.
Convenient breather over the festive season, thanks to the three-month payment holiday on
home loan repayments.
An opportunity to fix home loan rate at the current prime rate – ensuring no increases in bond
repayments for 12 months.