ABSA - No more 100% bonds! EVER!

An update straight from the horses mouth!

“We explored whether ABSA home loans are in the near future going to introduce a 100% LTV offering to the market and improve the current 70% LTV offering to non-ABSA customers. From the feed-back received from the ABSA home loans Head Office team yesterday, it seems unlikely that in the short-term ABSA are going to move on their LTV’s in the aforementioned categories.

ABSA home loans also confirmed that their direct LTV offering definitely did not include 100% loans. ABSA only offer 100% loans to qualifying applicants for their My Home product (up to 110% risk) and to qualified purchasers of their pre-PIP’s (properties in possession) and PIP’s. These 100% loans are available through all channels, including origination.

WizardMan Out!

"Nedback" on track

Ladies and gentleman!

What better way to start a magnificent Friday then to give you the news that Nedbank is offering 100% home loans again!

This is a briliant and positive step in the right direction, meaning other banks will follow suit shortly.

From my previous post we know that Standard Bank home loans are offering 100% loan although not via the bond originatio channel. Nedbank home loans on the other hand have come to the party and realised that more than 70% of their home loans business is from bond channels so why cut them off!

Read the memo from Nedbank below:
Please note that Building Loans will be treated like First Loans, and where a “Building Loan” Further Loan is involved it will be treated as a Further Loan.

Kindly note that 100% LTV offerings are dependent on successful confirmation of a favourable client risk profile. Should a client profile not meet the Bank’s minimum risk criteria, the Bank will reserve the right to decline or issue a lower than 100% LTV.

All changes applicable will relate to residential home loans submitted to Nedbank as of the 29th of September 2009.

Home Loan applications that are currently in the Bank’s system will be processed as per previously communicated LTV rules.

I would kindly request your assistance in distributing the communication to the respective sales channels including aggregation businesses and associated agents. Please direct all operational queries to your local Nedbank sales representative for immediate assistance.

WizardMan Out!