ABSA give HIV patients leeway on bond payments

By Staff Writer
ABSA has announced a new endeavour in which they will allow their HIV-positive clients, who are on the 110% MyHome Loan bond, to skip mortgage payments should they fall ill due to HIV-related illnesses.

ABSA has sourced insurance to cover mortgage instalments for the lower income customers who can't work due to AIDS-related diseases.

"Mortgage payments will be covered [by insurance] until you get better," Luthando Vutula, managing executive of Absa Home Loans told Fin24.com

"HIV/Aids voluntary counselling, testing and treatment programmes as well as borrower education will be provided by the banks' external partners. :
Vutula was, however, mum on the partners getting on board for this venture.

The 110% MyHome Loan product is now available to households earning less than R15 142 a month, up from R11 000 previously.

ABSA said it believes that it is important to intensify its focus on the affordable housing market but, as per the national credit regulator, only 30% of a household's income may be spent on bond repayments.

That means a household earning R15 142 per month (via either joint or single income) will be able to afford a house of up to R450 000 if no deposit is paid.
100% home loans have been on offer recently, with stricter lending criteria in place, meaning banks had a lower approval rate than in the past but Vutula insists that this criteria does not stop clients from getting home loans.

"If you can afford it, there's absolutely no way you can't get it," he concluded.

Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save with 10X investments

Price: Free
When: Until 30 June
Where: Online

Sanlam Cumulus Investment Plan Limited Offer

Price: From R2,500
When: Limited Period
Where: Nationwide

Roman's Pizza Special-Single Large Pizza

Price: R69.90
When: Until 31 July
Where: Nationwide