As a means of taking advantage of the middle- to higher-income customer’s demand for homes, Capitec Group announced last Friday at it’s annual general meeting that is would be entering into the home loans market.
Capitec has ventured into this market with SA Home Loans. Capitec’s head of Strategic Communication Charl Nel says the home loan range will be between R100 000 and R5 million. The co-operation agreement Capitec has with SA Home Loans will be piloted in Gauteng and then extended across the country.
“It will be a secured product offered by SA Home Loans through the Capitec branch network. Capitec is thus the distribution channel and SA Home Loans the home loan provider. The product will be the standard SA Home Loan product,” says Nel.
In a statement Capitec CEO Gerrie Fourie said feedback from their #AskWhy Campaign showed there was a demand from consumers for a simplified approach to obtaining a home loan.
“In response to this, we entered into an agreement with SA Home Loans to deliver home loans to the market in the simple, efficient way that both our client service models are well-known for,” said Fourie.
From Monday 7 July the bank’s home loan offering, under the agreement with SA Home loans, will be made available in Gauteng’s 160 Capitec branches.
As the smaller niche player, SA Home Loans brings a client-focused, single product expertise, whilst benefiting from Capitec’s extensive and rapidly growing distribution reach and client base.
Responding to questions from DESTINY on how the home loan interest rates will work and how the loans compare to those from other commercial banks, Nel responded: “We are not going to really debate the unsecured credit market any further. Our consecutive results speak for itself and the differences between ourselves and our competitors are in the public domain.”
SA Home Loans CEO Kevin Penwarden says in a statement that both companies who are entrepreneurial success stories fit together well in creating “a powerful platform to broaden consumers’ access to home finance”.
“As the smaller niche player, SA Home Loans brings a client-focused, single product expertise, whilst benefiting from Capitec’s extensive and rapidly growing distribution reach and client base,” says Penwarden.
The product will be made available to new bond applicants and Capitec clients who may have existing home loans and would like to switch their bond to SA Home Loans.
“Whilst this boosts our product offering and brings us closer to becoming a one stop solution for clients, the agreement expands distribution for SA Home Loans through most of our over 630 branches,” said Fourie.