For most people, buying a home is the largest and most exciting investment that they will make. It is an emotional experience as a home means security and is the heart of the family – a place to call home.
According to Carel Grönum, managing executive of Home Loans at Absa, “We are putting the customer at the heart of everything that we do. Absa is committed to ensuring that we widen the doors to home ownership whilst also educating prospective buyers.”
Today, Absa launched ‘MyHome’, which is a repositioning of the bank’s Affordable Housing segment. MyHome is a unique customer proposition that will open the doors of home ownership to people who earn less than R18,600 a month, giving more South Africans a chance to own a home.
A compelling feature of the MyHome proposition is that it offers Absa customers a 30% discount on the initiation fees applicable to their home loans. Additionally, Absa has secured a deal with its panel of attorneys to make it easier for customers to afford their own homes by providing a 30% discount on bond costs.
The respective discounts will be effective from 1 July to 31 December 2014 and will be applicable to home loans which have been approved and/or attorney instructed during this period. This offer will also be available to existing customers, who may require further advances on their existing bonds.
Grönum adds, “We know that buying a property is the single biggest and most important investment which most people will make in their lifetimes. Yet, many first time home owners have not been exposed to home ownership and financial management – largely as a result of South Africa’s historical legacy on property ownership, access to finance and education. We believe we have a role to play in ensuring customers are properly informed and educated regarding their investments.”
To address this challenge, Absa has designed a First Time Home Buyer (FTHB) training programme funded by the French Development Agency, which aims to educate 17,000 first time home buyers by the end of December 2014.
“Home ownership comes with additional expenses such as rates and taxes, maintenance and a variety of insurance policies from the structure of the house, to ensuring your household goods and possessions are protected and even the life of the home owner. Buyers need to include these expenses in their budget to determine what repayments they can afford on a home loan. The FTHB programme will inform customers about all aspects regarding the process of buying and owning a home as well as sustainable home ownership.”
“Absa’s MyHome offering will be the driving force to enable Absa Home Loans to assist government in alleviating housing shortages in our country. This offering reinforces our role as a socially responsible corporate citizen as we help our communities to prosper and realise their home ownership dreams,” concludes Grönum.