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.
ABSA give HIV patients leeway on bond payments
16 Mar 2010
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