Capitec announces it is entering home loans market

0:00
play article
Subscribers can listen to this article
Capitec has partnerned with SA Home Loans to launch its first full home loan offering with interest rates starting from 6%. Photo: Supplied by Capitec
Capitec has partnerned with SA Home Loans to launch its first full home loan offering with interest rates starting from 6%. Photo: Supplied by Capitec

Capitec announced on Tuesday that is has entered the home loans market.

Up until now, the country's biggest bank by customers has not offered secured lending to finance purchases like homes, even though it quietly launched "purpose lending" 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 home loan offering.

The bank is offering linked interest rates from 6%, one percentage point below prime, which directly compete with the offerings of SA's major banks who have been in the secured lending game for decades.

Although the home loan is branded Capitec Home Loans, it is SA Home Loans, and not Capitec, that will assess and approve customers' applications and enter into credit agreements with them.

The bank's digitally-led home loan offering can finance properties up to R5 million over a period of 30 years. The bank said customers simply have to apply online. It promises to complete the process in just five minutes. Together with SA Home Loans, the bank is also offering a discount of up to 50% on lawyer fees.

"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," said Francois Viviers, executive of marketing and communications at Capitec.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.22
(-0.07)
ZAR/GBP
20.67
(-0.12)
ZAR/EUR
18.37
(-0.09)
ZAR/AUD
11.72
(-0.09)
ZAR/JPY
0.15
(-0.87)
Gold
1827.50
(+0.01)
Silver
24.75
(+0.10)
Platinum
1070.99
(+0.29)
Brent Crude
54.89
(-2.34)
Palladium
2377.00
(+0.59)
All Share
63549.75
(-0.52)
Top 40
58446.35
(-0.49)
Financial 15
11916.89
(+0.01)
Industrial 25
83811.01
(+0.08)
Resource 10
63855.25
(-1.46)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 646 votes
No, I did not.
51% - 1605 votes
My landlord refused
28% - 868 votes
Vote