Well, if they're not trying to force property prices down in South Africa, I'll eat my shorts.
As of Monday 12th May 2008 ABSA home loans will only offer 100% loans to people purchasing properties under R800 000.00. Gone are the days of buying massive properties with no cash on hand.
As From Monday ABSA will place a cap on LTV(Loan to Value) going forward.
R0 – R800k = 100% bond
R801k – R2.7m = 95% bond
R2.7m – R4m = 85% bond.
This means that buying a property of R2.8million will require you to have a R420 000 deposit for your place.
Once again I put emphasis on the Sub-Prime Mortgage market in South Africa.
Absa Home Loans - International Mortgages
Absa Home Loans - A Switched on Unit