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Capitec has partnered with SA Home Loans to launch its first complete offering of home loans with interest rates starting at 6%. Photo: provided by Capitec
Capitec announced Tuesday that it has entered the mortgage loan market.
So far, the nation’s largest bank by clients has not offered secured loans to finance purchases like homes, though it quietly launched “purpose-built loans” to finance cars through unsecured credit in April this year.
On Tuesday, Capitec announced that it has decided to partner with SA Home Loans to launch its first full mortgage loan offering.
The bank offers pegged interest rates starting at 6%, one percentage point below prime, that compete directly with offers from leading South African banks that have been in the secured loan game for decades.
Although the mortgage loan is branded Capitec Home Loans, it is SA Home Loans, and not Capitec, who will evaluate and approve client applications and enter into credit agreements with them.
The bank’s digitally directed home loan offering can finance properties of up to R5 million over a 30-year period. The bank said that customers simply have to apply online. It promises to complete the process in just five minutes. Along with SA Home Loans, the bank also offers a discount of up to 50% on attorneys’ fees.
“We have continually received requests from both clients and the public asking us to challenge mortgage lending regulations as we have done with banking,” said Francois Viviers, Capitec’s marketing and communications executive.
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