Absa Affordable Housing Enhancements

Absa Affordable Housing Enhancements

In light of changing market conditions, particularly at the lower end of the housing
Market, Absa Home Loans have taken a strategic decision to increase the income levels
Of the MyHome product and Affordable Housing segment.

The product offered within this segment

A: Income less than and equal to R11000 (Gross Joint Household Monthly
Income): Absa MyHome product

- Loans up to 110% Loan To Value LTV and Maximum 80% Risk to Value (RTV)
- Borrower Education for all customers with loans in excess of 80% of the purchase price.
- Repayment term up to 30 years (default if not specified; i.e. 20 years)
- Credit Life Policy – Home Loans Protector Plan
- 30% Collateral Replacement Indemnity Scheme (CRIS)

B: Income between R11 000 and R15 000 (Gross Joint Household Monthly Income):
Absa Affordable Housing
- The business as usual home loan rules will apply


The Collateral Replacement Indemnity Scheme (CRIS)

In order to mitigate the risk between 80% to 110% customers must either provide a cash deposit, Employer guarantee, government guarantee, Pension Supported Home Loan or other acceptable Guarantees.

If the customers cannot provide collateral, Absa will provide a CRIS ( Collateral Replacement Indemnity Scheme) guarantee from the Home Loan Guarantee Company (HLGC). CRIS is effectively a bad debt insurance product. HLGC will cover the guarantee amount Agreed upon, to reduce the potential shortfall amount recovered after sale in execution of The property.

a. CRIS Rules and Requirements:
- The insurance cover period is 5 years from the date of registration and this may be renewed.
- All customers with CRIS must attend Borrower Education
- HLGC will provide a CRIS guarantee of up to 30% (80% RTV to 110% LTV)
- New CRIS loan will be administered by the Home Loan Administration Centre (HLAC)
- Any accounts in arrears will be administered by Secured Collections.

Please Note: Absa home loans systems will allow a maximum of 110% to Purchase Price and Loan to Valuation without you having to capture an employer or personal guarantee for all
Applications where the Total Household Gross Monthly income is between R1500 and R11 000
And the customer does not have a deposit or other types of collateral security.