AMENDMENT OF THE FLEXIRESERVE COMPREHENSIVE FACILITY
Absa Home Loans has taken a decision to amend the FlexiReserve Comprehensive facility.
The bank’s stance to amend the facility was primarily due to the decline in property values over the past six months. Allowing access to the original loan granted without a validation of the property's value poses an increased risk for both the customer and Absa. As a responsible credit provider, the bank acknowledges that the amendment of the facility will prevent customers from going further into debt, thereby placing their homes in jeopardy.
This means that customers will now access the equity in their home loans differently as of 24 November.
The FlexiReserve Advance/Prepaid option is not affected by this change. Customers may still access the extra money paid over and above their regular instalment. If customers do not have this facility loaded onto their account, it can be loaded by filling in a form at any Absa branch.
Customers can access the advanced/prepaid amount through our mechanisms such as internet banking, cell phone banking, telephone banking, Absa ATMs or any Absa branch.
The Absa FlexiReserve Comprehensive facility enabled customers to withdraw the money already paid off on their Home Loan at any time. Customers can still access these funds until 24 November. Thereafter they will have to apply to do so and will be subject to standard credit criteria and pricing. Successful applications will have the facility re-instated within in 24 hours.
If a customer’s home is worth more than the value of the Absa home loan they took, the customer may apply to increase the value of the loan amount. This is a Absa Further Re-advance option and normal credit criteria and pricing policy will be applied.
Should you have any queries on this facility, please contact us on 0860 111 007 or email home@absa.co.za.
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