Absa has introduced a new home-loan product that makes it possible for almost anyone to own a home of their own.
MyHome gives individuals or couples with joint monthly incomes of between R1Â 500 and R7Â 500 access to an affordable 100% mortgage bond that can also include a five-year fixed-rate option.
“MyHome will make it possible for almost all South Africans to own a home,” says Gavin Opperman, managing executive of Absa Group Home Loans.
“It is completely unique concept in that the qualifying criterion is based primarily on proof of regular income. This means that applicants do not have to be formally employed to be granted a home loan.
“We realise people who work in the informal economy also need a place to call home.
“In addition to offering our clients 100% bonds, an additional 10% will also be included to cover transfer duty, bank fees and registration costs.”
MyHome is the result of extensive research into the needs of the lower end of the home-loan market and has been designed to make it as easy as possible for clients to gain access to mortgage finance. It is being rolled out through Absa’s extensive branch network.
Absa’s new home-loan product falls squarely in line with requirements of the Financial Services Charter that calls on financial institutions to make it possible for all South Africans who are able to repay debt to own a home. — I-Net Bridge