ABSA PRIVATE BANK HOME LOAN - BondPlus Online

[Pages:25]ABSA PRIVATE BANK HOME LOAN

Description of the product Absa Private Bank Home Loan is a unique home loan offer, with differentiated positioning and appeal, offered to the Absa Private Bank clients.

The Private Bank Home Loan offers packaged MultiPlan, FastForward, First Time Home Loan and FlexiReserve holistically to deliver upon client requirements.

The individualised interest rate and service delivery has been employed as the key differentiator. MultiPlan forms the core of the offer and is supported by FastForward, First Time Home Loan and FlexiReserve, which will be selected by client choice.

Qualifying criteria ? Existing Absa Private Bank clients.

FICA requirements for opening an account ? Barcoded ID document ? The original document or a certified copy of one of the following documents

verifying your residential address, not more than three months old: e.g. Utility bill, lease or rental agreement, Telkom statement, etc. ? Original document or certified copy of a South African Revenue Services document, reflecting your personal details and income tax number (if issued).

What are the features and benefits of the product? ? Preferential interest rate if the client approaches the bank directly ? either via the

Internet or directly through the Relationship Manager (i.e. no originators are used) ? The option of one account with a multitude of individualised facilities, each with its

own interest rate option, debit order, repayment term and statement (MultiPlan) ? In certain instances, Absa offers loans in excess of the property value. In these

cases, the amount exceeding the property value will be catered for on a separate loan account at a higher interest rate. ? Dedicated RM for enhanced and efficient processing and management ? Account management option which allows automatic annual increases to be applied to the home loan to ensure early settlement and significant interest savings (FastForward). ? Option to deposit and withdraw funds at any time through a channel of the client's choice, e.g. ATM (FlexiReserve). ? Enhanced application via the Internet ? Individualised preferential interest rate (on the variable interest rate option) ? Flexibility and choice to structure home loan ? Loan can be increased via a Further Advance when needed.

Related products or alternative products Choice of products from the Platinum Solutions to cater for a client's transactional banking requirements (e.g. Platinum credit and debit card, ePlatinum and Platinum One)

Preferential rate for insurance and valueadded services via the Platinum Insure option (Platinum Insure).

Pricing structure A preferential interest rate if you arrange finance directly with your Relationship Manager or apply via the Absa website.

Normal Home Loan fees will apply.

Where can you find out more about this product? Speak to your Relationship Manager of Financial Planner, contact Absa Platinum Direct on 0860 00 33 00 or visit the Absa website at absa.co.za

ABSA GOLD FACILITY

Description of the product The Absa Gold facility is a bundle of products incorporating an Absa Home Loan, Electronic Banking and a Cheque account with full transactional capability. The bundle has been tailored to suit the requirements of all private individuals with a regular monthly income of between R10 000 and R41 666, looking for a holistic banking solution.

Documentation to accompany your application: In order to apply for a Home Loan, please bring the following documents along: ? Fully completed application form. ? Your barcoded ID document. ? Latest salary advice. ? Offer to purchase. ? The original document or a certified copy of one of the following documents

verifying your residential address, not more than three months old Municipal account, lease or rent agreement, Telkom statement, etc. ? Original document or certified copy of a South African Revenue Services document reflecting your personal details and income tax number (where issued).

AVAF and Credit Cards are available on application.

What are the features of the bundle? 1. AN ABSA HOME LOAN WITH MULTIPLAN AND FLEXIRESERVE

a Home Loan Features ? Home Loans of up to 110% of the property value. ? Loan amounts above 100% will be allocated to a secondary account

(MultiPlan) at a higher interest rate. ? Choose the fixed or variable interest rate option that suits your needs. ? You can register a larger bond than the amount of the loan granted, which

will cut the cost of increasing your loan (via a Further Advance) in future. ? Further loan amounts may be applied for as soon as your property value

increases sufficiently or when you want to extend/improve your property.

b MultiPlan Features Any loan amount granted in excess of the property value will be structured on a secondary account (at a higher interest rate). You can choose to split your loan into additional MultiPlan accounts:

? Each MultiPlan account can have a different rate/rate structure and repayment term (less than or equal to the term of the primary account). Normal home loan rate options apply, i.e. variable/fixed rates.

? Each MultiPlan account has its own individual account number. ? You can select different FlexiReserve options on each MultiPlan

account. FlexiReserve is not mandatory to be able to utilise MultiPlan.

? Statements are produced on each account. ? Each MultiPlan account is paid via a separate debit order instruction,

which may be from a different source. ? Up to 99 different MultiPlan accounts may be opened. ? Each MultiPlan account can have its own designation that will reflect

on the statement, e.g. 1. Primary account may be called "Home account" 2. Secondary account no. 1 may be called "Pool" account 3. Secondary account no. 2 may be called "Holiday" account

c FlexiReserve Features ? Besides having access to additional funds deposited in your home loan, the comprehensive FlexiReserve option enables you to draw funds up to the original loan amount. ? The comprehensive FlexiReserve option has two repayment calculation options once a withdrawal is made, the instalment is recalculated to repay the new balance over the existing term (i.e. the instalment increases) or the term is extended back to the original term. ? Additional payments to the loan are capitalised immediately (i.e. reduces your interest charge). ? Immediate access 24/7 to available funds in your Home Loan via the Internet, telephone, ATMs or branches enabled by transfers to your Gold Facility Cheque Account. (No cash withdrawals are possible from your home loan account).

2. GOLD FACILITY CHEQUE ACCOUNT ? Gold chequebook with cheque certification up to R2 000. ? Overdraft facilities are available on application and can be negotiated at preferential rates. ? One account number for life (your account number will remain unchanged even if you decided to transfer your account to another branch). ? Access to the largest ATM network in the country. ? Your Absa ATM card is also a debit card that you can use when buying at any retailer who displays the Maestro or Visa Electron sign. ? You can withdraw or deposit cash, pay accounts, transfer funds and request balances and statements with your Absa debit card. ? Single Management Fee, incorporating your Electronic Banking and Cheque account transactions, which means you pay a fixed monthly amount. ? Tiered credit interest rates.

3. ELECTRONIC BANKING Electronic Banking facilities, via Internet, Cellphone or Telephone Banking include:

? Balance enquiries ? Statement enquiries ? Interaccount transfers ? Obtain account information ? Transaction log ? Download bank statements electronically in any of the following

formats for importation into the respective software packages: o OFC (MicroSoft Money) o QIF (Quicken)

o ASCII (Pastel Format) o ASCII (Fields delimited with an *) (For use with Excel, Lotus,

etc.) ? Cancel existing services ? Change PIN ? Bill Payments ? Own Defined Payments ? Stop orders setup ? Stop payments of cheques ? Apply your own account names ? Mini Vehicle and Asset Finance statements ? Airtime purchases ? Online Overdraft applications

How you can transact with the bundle? ? You can withdraw, deposit, transfer funds, pay your accounts, as well as obtain

balances and statements at ATMs and Absa Banking Halls, via your Absa Debit Card and/or Electronic Banking. ? You can also use the card to pay for your goods and draw cash at all merchants/shops displaying the Maestro/Visa Electron logo. ? Use your Gold Facility chequebook to make thirdparty payments (subject to acceptance by the payee). Alternatively, perform the same function via Electronic Banking. ? Your Gold Facility also allows you to transfer available funds in your home loan to your Gold Facility account, via Internet, Cellphone or Telephone Banking.

What are the limitations of the bundle? ? The Absa Gold Facility is only available to qualifying customers. ? The bundle is only available if all three products (i.e. Home Loan, Electronic

Banking and Gold Facility Cheque account) are taken up and remain operational ? subject to standard terms and conditions. ? (Note: Customers must maintain all three of the products. If any of the products in the bundle are cancelled or closed, normal pricing will apply.) ? Overdraft facilities are only available if qualifying criteria are met.

Related products or alternative products As an Absa Gold Facility Accountholder the doors are open to many other value adding products such as: ? Absa Vehicle and Asset Finance ? Absa Credit Cards ? Investments ? Shortterm and Life Cover

Pricing structure Management Fee The Management Fee is a single monthly fee that is charged to the account, which covers the following fee types: ? Service fees ? Transaction fees ? Cash Deposit fees ? Home Loan monthly Admin Fee ? Electronic Banking Fees (within set transaction volume limits, which are available

from your consultant)

Please see our pricing guide for the latest pricing information.

Other than the monthly Admin Fee, normal Home Loan fees will apply.

Interest rates The uptodate interest rates applicable to these products are available from your consultant.

Where can you find out more about this product? For further information contact your nearest Absa branch.

HOME LOAN

Description of the product The Absa Home Loan enables you to finance residential property.

The general repayment term is 20 years. However, this can be structured up to a maximum of 30 years. Vacant land, however, is repayable over a maximum of 15 years.

Documentation to accompany your application: In order to apply for a Home Loan, please bring the following documents along: ? Fully completed application form ? Your barcoded ID document ? Latest salary advice ? Offer to purchase ? The original document or a certified copy of one of the following documents

verifying your residential address, not more than three months old: Municipal account, lease or rent agreement, Telkom statement, etc. ? Original document or certified copy of a South African Revenue Services document reflecting your personal details and income tax number (where issued).

What are the features of the product? ? Chooses you the repayment structure you prefer ? fixed or variable. ? Different repayment methods may be utilised to repay your home loan (for

example debit order, salary deduction, electronic transfers, cash or cheque deposits.). ? You can register a larger bond than the amount of the loan granted, which will cut the cost and time when increasing your loan in future (via a Further Advance). ? In certain instances, Absa provides finance in excess of the property value. In these cases, the amount exceeding the property value will be maintained on a separate loan account at a higher interest rate. ? You can have electronic access to your home loan via Absa Internet Banking and Telephone Banking. ? The maximum term of your loan is 30 years. The term may be increased/decreased at any time at no additional cost. ? Further Advances: Further loan amounts may be applied for as soon as your property value increases sufficiently or when you want to extend/improve your property. ? Additional deposits can be made at any stage, which will immediately reduce your interest cost.

How does the product work? Your home loan is used to finance your residential property, whether it is your existing home or the purchase of another property. A Building Loan is also available to assist you with the building of a new dwelling or enhancing an existing home.

When you purchase another home, a new application for finance will have to be submitted and a new home loan set up.

In all cases, a Mortgage Bond is registered over the property as security for the home loan.

Interest is calculated on the daily outstanding balance and then capitalised/debited monthly on the instalment due day. Instalments must be paid into the loan account on the required instalment due day. Monthly repayments must be met in terms of the mortgage loan agreement. Unless another date is selected, the due day will default to the 1st of the month.

Limitations of the product Only residential properties may be financed with the Absa Home Loan.

Absa calculates the maximum home loan that you can afford based on your monthly home loan repayment not exceeding a calculation of your surplus (discretionary) monthly income.

Related products or alternative products Absa Home Loans customers enjoy the benefit of many home loan options such as the revolutionary FastForward repayment option, FlexiReserve* and the Absaunique MultiPlan facility. BondSaver, Telkom SmartMoves and various home loan related insurance and assurance products are also available.

*An Absa cheque or savings account is required to make full use of the FlexiReserve facility, particularly if wishing to use electronic banking facilities (Internet, Telephone, Cellphone or ATMs).

Customers may apply to increase their home loans via the Further Advance process when needed.

And don't forget Absa's multifaceted and strong financial infrastructure: besides Cheque and Savings accounts, Absa also offers Asset Finance, Personal Loans, Credit Cards, Investments, Absa Internet Access, as well as Internet, and Telephone Banking services.

Pricing structure Once the bond has been registered, there are other costs that are debited to the home loan account. These are:

? Initiation fee: This is a onceoff fee charged by the bank for processing the application and setting up the home loan.

? Administration fee: This is a monthly administration fee which is added to your monthly instalment.

? Assessment fee: This is a onceoff fee charged for performing an assessment on the property.

(Visit absa.co.za and use the Home Loan calculator to get an indication of total costs applicable to your home loan.)

Pricing Options N/A

Interest Rates Our range of interest rate options enable you to make the best deal based on your personal circumstances. You have a choice of fixed rates or a variable interest rate.

By selecting the variable rate option, you could qualify for a concession (a rate reduction) based on your income, loan size and the amount of loan relative to the value of the property. The interest rate will then vary with changes to the Mortgage Lending rate. (See separate documents on each rate option).

Where can you find out more about this product? Contact your nearest Absa branch. Visit our website at absa.co.za Phone our Home Loans Contact Centre on 0860 111 007.

ABSA REWARDS WITH HOME LOANS

Description of the programme This option is available on: ? Absa Home Loan ? Private Bank Home Loan ? First Time Home Loan ? MyHome ? Gold Facility

Absa Rewards is a loyalty programme that acknowledges and rewards you for making Absa your first choice in home loans.

Absa Rewards members earn Absa Rewards Points, which can be redeemed for a fantastic variety of rewards, such as hifis, microwaves, home appliances or amazing travel destinations. Best of all, these Points never expire.

Enrol now and also receive: ? 500 welcome bonus Points.

What are the features of the programme? Absa Rewards Points are available on a range of Absa Bank products. Members with Home Loans receive onceoff Points for registering their qualifying Absa Home Loan(s). Members with Vehicle and Asset Finance also receive onceoff Points for linking their qualifying Vehicle and Asset Finance agreement, while credit card users earn Points for using their Absa Rewards credit card.

New members Members earn 500 onceoff Rewards Points for new business, when linking their qualifying home loan to the Absa Rewards Programme.

Repeat business For repeat business, you earn 10 Absa Rewards onceoff Points per R1 000 of the outstanding capital amount when your register your new loan with Absa. Repeat business is a Home Loan that replaces your previous bond with

Absa. Note that your loan has to be above R125 000 to qualify, as Points are calculated on the average outstanding balance of your Absa Home Loan.

Your Absa Rewards Points never expire. Rewards Points are redeemable at any time by phoning 0800 600 059 or using the Internet at absa.co.za (and clicking on the Absa Rewards tab). You can claim from a comprehensive range of rewards such as travel, household and electronic goods.

How does the programme work? Points are only calculated and eligible after the registration of the bond. An annual fee ensures continued membership.

Limitations of the programme Only home loans with an outstanding balance of R125 000 or more on enrolment qualify.

Where can you find out more about this programme? Contact your nearest Absa branch and speak to one of our Home Loan Consultants or phone the Absa Home Loan Contact Centre on 0860 111 007. Visit our website at absa.co.za

BONDSAVER

Description of the product This is an option available on: ? Absa Home Loan ? MyHome ? First Time Home Loan ? Gold Facility ? Private Bank Home Loan

BondSaver shortterm insurance turns your shortterm insurance premiums into a revolutionary savings mechanism by linking it to your Absa Home Loan.

Combine the essential protection of shortterm insurance (protecting your lifestyle) with the wealthbuilding potential of paying your home loan off earlier than scheduled (saving you significant amounts of money).

Switch your existing shortterm motor and household insurance to BondSaver, and ? save thousands of rands on your home loan ? pay off your home loan faster ? remain fully insured

What are the features of the product? ? Any new or existing Absa Home Loans customer qualifies for BondSaver. ? At any time the funds in the BondSaver Reserve are available and can be

withdrawn. ? Pay off your home loan sooner. ? BondSaver is administered by Absa Brokers and underwritten by Santam and

Absa Insurance Company. (BondSaver is backed by reputable underwriters.)

How does the product work?

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