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Standard Bank to relax lending criteria
Standard Bank Team
Super Contributor

We’re proud to announce that we’ve made it easier for first-time buyers to enter the property market by easing our lending criteria for home loans. We’ve also increased our risk acceptance for credit cards.

(Please note that this only applies to the South African market.)

Although economic recovery is slow, we see medium-term improvement for South African households as affordability improves on the back of lower interest rates. While we remain focused on prudent risk, capital and liquidity management, we’re also committed to providing access to finance and financial services to the low income market.

The following adjustments have been made to lending criteria:

• Jump Start Bonds: First-time home owners who are using the house as their primary residence can now qualify for a cost-inclusive 104% Loan to Value (LTV) loan.
• Affordable Housing: LTVs of 100% (up from 90 – 95%).
• Customers using internal Standard Bank channels with home loans of under R1.5m can qualify for LTVs of 100% (up from 90 – 95%). Loans of R1.5m – R2.5m will still require a 10% deposit and home loans over R2.5m will still require a 20% deposit.
• We will now also accept low-risk non-cheque Standard Bank customers and low-risk non-Standard Bank customers for home loans.
• For credit cards, we have raised the ‘acceptable’ bad debt ratio by 3% on new business written in a select entry-level segment of the portfolio.

We've also accepted the tender proposals for origination business from BetterBond, Bond Choice and Multinet. All three have already been submitting home loan applications since 24 August 2009.