Absa Pension- supported Home Loans - CPUT

Absa Pensionsupported Home Loans

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Do you want to buy a home or do alterations to your existing home, but don't have the collateral to guarantee the loan?

Then an Absa Pension-supported Housing Loan is the perfect solution.

When you take out a loan, the bank needs a guarantee that you'll be able to repay the loan. They will either use policies, property or other assets you own to do this. This is called collateral. However, just because you don't have collateral, doesn't mean that you have to put your dreams on hold.

With an Absa Pension-supported Housing Loan you can use the money in your pension or provident fund as the collateral to either buy a home or pay for extensions or renovations.

It's important for you to remember we are not taking the money out of your pension or provident fund ? we are only using it as security. The money in your pension fund only acts as a backup and will still be safely waiting for you on the day you retire, as your employer has undertaken to pay the monthly instalments on your behalf.

1Who can apply?

Anyone who is a full-time employee contributing to a pension or provident fund who has signed a housing loan agreement with Absa and wants to renovate, extend, build or buy a new home. You will be required to continue contributing to your pension or provident fund. Remember, more money will be deducted from your salary to cover the repayments, so it is important to make sure you can afford the extra amount.

2 How much can I borrow?

The amount you want to borrow may not be more than the percentage amount allowed in your fund. As each fund is different, please check with your Absa PSHL consultant on how much you will be able to borrow.

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3 Benefits

? Interest rates are based on the fund and not only on your individual assessment

? It's a cost-effective way for you to finance your home as there are no further bond registration or valuation costs

? The repayments are easy because they are deducted directly from your salary (so there's no risk of missing a payment)

? You receive your money quickly ? you can get your money within 48 hours of approval from the fund, employer and Absa

? For complete peace of mind, you can even choose to take out insurance to cover the cost of the loan in case of death, disability or retrenchment

4 How do l apply?

It's easy ? you can apply at your place of work or over the phone. You will need the following:

? Proof of homeownership such as a bond statement, title deed, stamped letter from local chief confirming ownership

? Copy of your valid, green, bar-coded Identity Document (ID) or passport, copy of your payslip to show that you are a full-time employee (your employer can give this to you)

? Proof of residential address required for legal purposes (this can be an electricity, telephone or municipality account but it should not be older than three (3) months)

? If renovating, quotes from the builder or supplier will allow us to make sure that the money is used for housing purposes

NOTE: If you want us to take over an existing loan from another provider, we need to have a printed settlement figure from them at least 30 days in advance.

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5 What will affect my ability to qualify for the loan?

If one of the following statements is true, the loan will not be granted: ? You do not own the house and you are not purchasing a

property ? You're not part of a pension or provident fund ? You want to use the money for purposes other than

housing, like buying a car ? You cannot afford the monthly repayments ? Your employer has not agreed to have the facility available

6 Interested?

If you'd like more information, you can either contact the Pension-supported Housing Loan representative in your region or your human resources department. ? Gauteng (including North-West) e-mail:

pshl.gpsales@absa.co.za ? Gauteng North (including Mpumalanga and Limpopo) e-mail:

pshl.northsales@absa.co.za ? KwaZulu-Natal and Free State e-mail: pshl.kznsales@absa.co.za ? Western and Eastern Cape e-mail: pshl.capesales@absa.co.za

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