Homeowners Insurance

We know that home insurance is a grudge purchase, so we have partnered with the leading Insurers to save you some money and make that monthly payment an easier pill to swallow.

As South Africans, we need to protect ourselves against theft and property damage, which means that partnering with the right company is key! Our partners are a mix of Direct and Traditional Broker insurers ensuring that you are provided with a choice between two different ways of doing business.

Homeowners insurance, is in fact the correct term for this product, which falls under the category of life cover. Homeowners insurance is also referred to a bond cover, bond insurance, property insurance, house cover and bond protector plans.

To give you a brief understanding of what this is, it's life cover for your bond. This cover incorporates various different insurance policies, some protecting you from personal cover such as ill health and loss of employment, other plans cover you incase of damages incurred due to lighting or floods.

No one likes to think that they might loose their home if they lost their employment or good health. The harsh reality is exactly that.

We offer over 7 independent quotes from different insurance brokers.
We also have contracts directly with ooba for the cheapest insurance on ooba buildings protector plan and ooba bond protector plan. For more information on these products please contact us directly on +27 12 341 2223.

OR GET A HOMEOWNERS QUOTE NOW:

What are the banks doing?

OK people it's time for me to freak the @#$% out again!!!

I've been trying to figure out why we can work out affordability ANYMORE. By we, I mean bond originators in South Africa. I put these applications together work everything out according to plan, submit the application and we get declined on affordability (WHEN ON OUR SIDE, affordability is so evident you could by 3 places on the same salary).

BUT WAIT, what the banks are now doing is scoring you according to what rate they would give you. Rates at the moment, PRIME and PRIME PLUS!

So the point of this blog post is twofold:

1. For those of you applying for home loans ensure that you factor in at least a PRIME +1% into your affordability to ensure the accuracy of your affordability and to ensure your SANITY :)
2. Banks - Nedbank especially, please can you advise bond originators and the public when you decide to change scoring policies so that we all know what to do when applying for a bond.

We're not here to trick the banks we're here to work together with you!

Wizardman OUT!

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!

Standard Bank 100% home loan offerings

As you know Std Bank home loans have recently released their 100% home loan service offering to clients. Their marketing TOOL - only 100% home loans offered to clients that go directly to Std Bank and not via a bond originator.

Now obviously this is a little thorn in the side to most of the bond originators out there, BUT, what do you still have to your advantage?

1. Bond originators offer great service.
2. We do all the dirty work for you including, filling in forms, submitting to ALL 4 banks and following up on all the deals.

So, does this really affect your business if you're a bond originator? NO. And it shouldn't. Let's keep the flag flying high and show the banks why they need us.

Std Bank Criteria!!!

Standard Bank home loans has recently increased its risk acceptance rate in its Home Loan and Credit Card divisions. The changes made to Standard Bank’s risk appetite have been specifically designed to benefit first–time entrants into the housing and general credit markets.

Peter Schlebusch, Chief Executive, Personal and Business Banking, Standard Bank South Africa, says: “It is important that we support and provide access to finance to the lower end of the economic spectrum. People in this sector have been hardest hit by higher inflation, job losses and the general slowdown in the economy. Standard Bank is committed to providing access to finance and financial services to the low income market, while continuing to focus on prudent risk, capital and liquidity management.”

The following adjustments have been made:
Jump Start bonds (first–time home owners) up to R1m home loans and who are using this as their primary residence are now able to qualify for a cost–inclusive 104% LTV (loan–to–value) loan.

Affordable housing: Standard Bank home loans is now allowing LTVs of 100% (up from 90–95%).
Standard Bank has upwardly revised its LTVs on new home loans. Customers using internal Standard Bank channels with home loans of under R1.5m can qualify for LTVs of 100% (up from 90–95%). Houses of R1.5m–R2.5m will however still require a 10% deposit, and >R2.5m home loans will still require a 20% deposit.

Standard Bank has started accepting low–risk non–cheque Standard Bank customers and low–risk non–Standard Bank customers for home loans.

With credit cards, Standard Bank home loans is increasing its risk appetite by raising the “acceptable” bad debt ratio by 3% on new business written in a select entry–level segment of the portfolio.
Sim Tshabalala, Chief Executive of Standard Bank in South Africa, says: “We believe that an economic recovery will be slow but we see medium term improvement among households, as affordability improves on the back of lower interest rates. We have taken proactive steps to capitalise on this improvement.”

Standard Bank home loans has accepted the tender proposals for origination business from BetterBond, Bond Choice and Multinet, all three of which commenced submitting home loan applications from 24 August 2009. Standard Bank believes the new rates negotiated with mortgage originators will allow for a sustainable long term business model.