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Rate Concessions on JumpStart

Standard Bank has made a business decision to offer rate concessions to its future JumpStart customers with immediate effect. This will give the Bank the opportunity to compete on an equal footing with its competitors. In addition, the JumpStart product will appeal more to its target market (first time home buyers).

Currently Standard Bank does not offer rate concessions to JumpStart customers at the time of application (when LTV is greater than 100%). The only time a JumpStart customer may qualify for a concession is when they have repaid the costs portion that exceeds 100% of the value of the property or if they have had their property re-assessed and the property value has increased.

It is imperative to note that Standard Bank will not offer rate concessions upfront but will engage in negotiations with customers as other banks are currently doing. Therefore, customers will have to apply and motivate for concessions via the SBSA Pricing and Funding Division.

Rate concessions will be offered discretionally to customers, thus there is no set criteria. Below is an introduction guideline on how concessions will be granted for JumpStart loans:

• The bond size - higher value bonds will get better concessions upon individual consideration

• Customer’s profession – for example lawyers, chartered accountants, articled clerks. In this case, concessions offered will be determined by the loan size

• Customer’s relationship with the Bank – if customer has other accounts with Standard Bank

Pricing Structure

The pricing structure on JumpStart loans with rate concessions will be as follows:

0% -100% = Prime rate minus concession

101%-108% = Prime rate minus concession plus 1.5% (premium)

For any further information, you may contact Standard Bank’s Pricing and Funding Division (Christian Mushonga) on 011 636 1579 or Christian.Mushonga@standardbank.co.za

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