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Capitec launches its first full home loan offering

In partnership with SA Home Loans.
Image: Reuters/Siphiwe Sibeko

JSE-listed Capitec, South Africa’s largest retail and digital bank based on number of clients, has announced its foray into the home loan market in partnership with SA Home Loans.

The Stellenbosch-based banking group said in a statement on Tuesday that the launch of “its first full home loan offering” is built on the principles of simplicity and affordability, with the product having “one of the fastest application processes in the country”.

Read: We’ve already unlocked value with Capitec unbundling – PSG

Its new home loan offering would allow consumers to initiate an application in under five minutes – alongside highly competitive linked interest rates from 6%.

Francois Viviers, Capitec’s executive of marketing and communications, says the offering was developed in response to strong demand for a simple and efficient, digitally-led home loan option.

“We’ve continually received requests from both clients and the public asking us to challenge the norms of home loans as we have done with banking…. Previously, application processes have required a lot of paperwork as well as time. We’ve simplified this by offering potential clients an easy four-step online application that takes less than five minutes to complete,” he adds.

Capitec executive of marketing and communications, Francois Viviers. Image: Supplied

“You don’t need to have any documents on hand and the questions are easily answered through multiple choice or simple entries such as name, surname and income,” he says.

“We’ve also made it easy for clients to track the progress of their application in real-time through our online portal.”

We found most application tracking to be vague or use terms that are not easily understood by someone who is unfamiliar with the process. Our tracking is comprised of six easy-to-follow steps, with clear communication describing the details of each step and if anything is required from the client,” Viviers explains.

Read: Capitec results show scarily uneven impact of Covid-19

Capitec will offer home loans up to R5 million over 30 years. It notes that clients will get a discount of up to 50% on lawyer fees through SA Home Loans’ National Panel of Attorneys. However, it is unclear whether the partnership with Durban-headquartered SA Home Loans goes beyond this element.

“There is also a further benefit for government employees who, if they apply for a new home loan or switch their existing bonds, could qualify for a discounted interest rate,” Capitec says.

To qualify they must use the government employee housing scheme (GEHS) stop order.

“This special home loan package (for government) offers a flexible term of up to 20 years on 100% of the purchase price, depending on the applicant’s affordability… After an application is underway, it can be tracked in real-time on the home loan portal,” Capitec notes.

“Alongside the portal, clients are also assigned a home loans consultant, should they require further assistance through personalised human interaction.”

Capitec’s share price was up more than 2% in morning trade on Tuesday at R1 206 a share at around 11am.

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How can you call a SA Home Loan a Capitec Home Loan – and I think Standard Bank owns a large part of SA Home loans.

Why can’t Capitec raise its own Home Loans book?

In my opinion Capitec is in this instant a Mortgage originator.

Legally they need to disclose this to the applicant/s and the market – for advertising purposes.

The nature of the relationship between Capitec and SA Home Loans is disclosed on the Capitec website.

Pray tell us what it is then Wendy. Are they just a front-office, or will the home loans go onto their balance sheet?

All pretty incestuous.

Good to know that it’s part of SA Home Loans. I didn’t know that.

I’ve become a bit disenchanted with Capitec in recent months with the BS they have given me when applying for certain facilities – despite being a customer for over a decade and having high balances with them.

They need to sort out the BS to keep me as a customer otherwise it will be bye bye soon.

Expropriation of land without compensation sweetens this home loan offering even more.

At long last, thank goodness – hopefully it will end the many years of being given a run around by the ‘big four’.

As a long time customer and investor, I look forward to the offering. This bank never ceases to amaze =

Why bother, the eff marxist thugs will just expropriate it leaving you with the debt!

Any bank brave enough to offer fixed rate 20y loans yet?
Weird how its the norm in the US? What would it take to offer it locally?

South Africa won’t last that long, let alone our banks and your house which will be stolen out from under us when malema and his marxist thugs come a’knocking.

Best we all build traditional mud rondavels and be done with any attempt at modernisation and civilisation!

How is this different from what they had a few months back?
This link with SA home loans was around for a while.

Have they just created a new user experience?
Potentially increased the max term from 20 to 30 and created the government link?

So I’m struggling to fully understand the headline

Additionally, their 4 step application process is just the pre-approval process that most providers have. You would still have to follow the actual SA Home Loans application process.
So I’m also confused about what is ground breaking about the 4 step pre-approval process?

Can someone please help me understand (perhaps the author of this article)?

There is no need for us to pay so much money to lawyers just to attend to the transfer of ownership. Just like we can register our own cars, the deeds act should be amended to allow us to register properties.

After taking out a loan for 90K in 2011 when I joined and paid it off, my credit record went into decline – Now any service I request is declined and i’m told re apply after 3 months…They should focus more on client centricity especially for those of us whose salaries exceed 900k- Good luck with home loan business…

End of comments.

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