Standard Bank has introduced an innovative way of pricing new home loans from April 2019. The pricing will result in lower monthly home loan payments as the loan is repaid. The effective interest rate will also reduce with every payment, resulting in huge savings over time! This completely breaks the traditional single interest rate customers have typically received over their 20 to 30year terms.
Andrew Van der Hoven, head of Standard Bank Home Loans says; “as the leading home loan provider in South Africa, we believe strongly in fulfilling our purpose of helping South Africans own a home. When looking at our current home loan offering we felt that it could be better aligned to this purpose. This new pricing is designed to rewards clients for every payment they make on their journey to owning their home. We believe that home ownership is vital to wealth creation and we want to be part of that journey.”
How this will work is that the loan will be broken up into up to three portions, with each portion of the loan being priced individually at a lower rate. As the loan is paid off a higher portion of the loan will be at the lowest rate on the account.
For example, in the case of a bond for R 1 000 000 over 20 years the price will be as follows:
The portion of the loan between R 800 000 and R 1 000 000, will have an interest rate of 10.50%
The portion of the loan between R 600 000 and R 800 000, will have an interest rate of 10.25%
The portion of the loan between R 0 and R 600 000, will have an interest rate of 10.00%
“With this structure as the client pays off their loan they will pay less interest and a lower interest rate. The true value of our pricing however is in the real additional monthly cash flow it can provide as well as the total interest the client will save” says Mr. van der Hoven.
In this example the client will pay approximately R2,800.00 less in the first year of the loan and over the course of 20 years this client will save over R67 000 in interest when compared to a traditional single rate loan.
“In order to benefit from the lower rate our clients can also make extra payments whenever they have additional funds, this is an alternative to the typical home loan where you only receive an interest rate benefit if a deposit is paid upfront. Having a deposit is good financial practice but it’s not always possible for many buyers at a point in time, this new structure allows those customers to benefit when they have saved enough” says Mr. van der Hoven.
In summary Standard Bank’s new pricing on home loans benefits participating homeowners in four ways, these are:
The interest rate reduces as the loan is repaid. The customer is not stuck on the single rate for the life of their loan anymore..
The minimum monthly instalment decreases as the loan is paid off.
Significantly less interest is paid throughout the loan term.
Customers are rewarded with a lower interest rate if they deposit additional funds anytime during the term
The product is also ideal for homeowners who wish to take up a loan option that enables them to cut the term of their loan while enjoying an interest rate benefit.
“We believe that our new pricing promotes healthy financial management and increases home ownership through rewarding our customers to pay off their loan” concludes Mr. Van der Hoven.
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The land question is immensely emotional. The issues on both sides must be approached with reverence and careful thought.
A great deal of work went into crafting section 25 of the Constitution. The authors contemplated the three major vectors involved in this debate: redistribution, restitution and security of tenure. They carefully balanced the competing aspirations and rights that have arisen.
Pertinently, any system dealing with the land question, globally, is dependent on a capable state, and clearly defined rules – otherwise chaos results.
In our case, we’ve got the umbrella law – what’s missing is some legislation and most of the capacity required to give proper effect to redistribution, restitution and land tenure rights.
The Kgalema Motlanthe panel report makes these points persuasively, as do a number of other research reports and studies. What also emerges from the Motlanthe report is some of the instruments that SA has in place either don't completely use the funds allocated to them, or the community structures that are allocated land are dysfunctional. Then you’ve got the issue of precarious tenure for farmworkers, rural dwellers and the millions of people who’ve moved from rural areas to live in cities.
The point is: the infrastructure necessary to deal with all this is inadequate.
Then there's “expropriation without compensation”. Section 25 deals with it and nowhere does it say you have to have the willing-buyer-willing-seller principle. So, there could be circumstances in which it’s appropriate not to pay for land.
I’ve read the motion that was passed in Parliament on “expropriation without compensation”, the ANC’s conference resolution, and the president’s comments in Parliament. I believe what people are saying is one of the mechanisms for dealing with the three major vectors should be the acquisition of land on the basis of expropriation without compensation, and authorities must put in place modalities to do that. And they must do that in a way that doesn't damage the economy, the agriculture industry or cause famine. I see no difference between that and what is currently in the Constitution.
So, I'm not panicked. What society is saying, is that SA needs a conversation – again – about redistribution, restitution and land tenure.
In my view, what is needed is engagement between the social partners. We must make sure there is proper justice in the process, for people who don’t own land, as well as for people who do. Both groups contain both black and white South Africans.
The same argument applies to nationalisation. The real issue is that people are concerned about the allocation of society’s benefits and burdens, assets etc., and they’re concerned there are too many poor people and only a small wealthy elite in our country. This isn’t sustainable.
However, nationalisation is not the correct instrument to address inequality; international evidence is clear. Business should engage: let’s find a way to modernise and grow our economy, and how best to allocate society’s benefits and burdens.
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You are the dream chasers, the outliers, the high-flyers. You fight against the odds, it’s not going above and beyond, it’s what you do. It is not enough to get the job
done, you get the job done right. You make money move. You do whatever it takes to get to your Next.
At Standard Bank we understand that you are more than just your job title, the corner office or reaching the target. The world is at your fingertips, you take every
opportunity to create your own road. You work hard so you can play hard because you deserve it. You are your Next.
Professional Banking account offers a wide variety of benefits that match your ambition.
Exclusive to your Next
Enjoy a wide variety of benefits such as exclusivity on travel packages and complimentary access to the premium Standard Bank Café Blue, so you start relaxing
well before your holiday starts.
Get 12 free Domestic Bidvest lounge* visits annually with your Professionals Credit Card
Gain access to our Café Blue lounge at O.R. Tambo International with your Professionals Cheque or Credit Card
Enjoy incredible local & international travel packages, flights, car hire & much more on the UCount Rewards Travel Mall*
Sophisticated black Professional Cheque and Credit card.
Access exclusive offers on the Mastercard Buy 1 Get 1 app* when downloading the MasterCard App
Collect UCount Rewards Points* when shopping with your Professionals Cheque or Credit Card
Your Next has a name
Professional Banking customers also receive a tailored banking experience with specialised solutions and advice for you.
Your Private Banker together with a team of advisors and specialists will construct specialized solutions and advise for you
24/7 support through a team of bankers via E-mail, Private Banking Line, WeChat or Facebook Messenger @StandardBank Instant Messaging
Let your money hustle for you
You work as hard as you do to build a portfolio of wealth, and you should therefore protect it. From car and home insurance, trusts and wills, our Wealth Advisory
specialists are here to ensure that you and your assets are taken care of.
Gain access to our specialist team of financial advisors who assess your financial position and your future goals
Make smart decisions for your portfolio with expert advice and access OnLine Share Trading for Professional Banking with a seed capital of R1000* to start with
Building a portfolio of wealth from Car; Home and Life insurance, our Insurance and Wealth Advisory Specialists will ensure that you and your assets are taken care of expertly and professionally build a portfolio.
When your Next is bigger than your now
Whether it be buying your first home, paying for your first trip abroad, starting your own practice or refurnishing Mama’s house to thank her for all she has done
for you. We offer tailored solutions for you, the tailored professional.
Get a guaranteed preferential rate of prime less 0.25%* on your Professional Black Credit Card and Vehicle finance
Get access to our Diners Club Card aiming to deliver bespoke offerings for your unique Travel, Lifestyle & Entertainment needs*
Get your Home loan approved with us*
Personal Loans at personalized interest rates*
Finance available for starting, managing or growing your own business
Apply for a Professional Banking Cheque and Credit card
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“This is a real godsend! So much of what we do relies on donations like this to make our work happen!” So says Stephen Mahony, CEO of educational non-profit JumpStart. The Gauteng division of his NGO was chosen to receive a cheque for R50 000 on Standard Bank’s popular weekly game show, Your Next Million.
Our game show’s purpose is moving contestants forward to their Next, whether that’s paying off a house or buying one, providing for a child’s education, or even paying for a destination wedding. But that’s not all Your Next Million is about – we also recognise the people and organisations who, through dedicated good work, drive South Africa to its Next.
Like all non-profits previously chosen as winners of Your Next Million’s R50 000 NGO cheque, JumpStart Gauteng (which also has operations in the Free State) aims to drive progress throughout the nation via educational development. Since 2002, the organisation has worked to improve children’s grasp of mathematics on primary-school level, believing that this is the key to our youths’ future prospects of employment, as well as South Africa’s future wellbeing. JumpStart Gauteng’s interventions not only include comprehensive and effective classroom learning, but also improving teacher competence and digital e-learning solutions. With a R50 000 boost, their efforts can go even further. Stephen explains:
“We work in schools in Eldorado Park where we employ previously unemployed young adults as maths tutors. These tutors work in the classrooms of primary-school learners to positively impact their mathematics skills. This R50k will go directly to supporting this team.
“What a great initiative from Standard Bank,” Stephen continues. “Our own motto, ‘thinking forward’ couldn't say it better. Here's a financial institution in South Africa working toward the future of improved learning outcomes in the critical area of mathematics. Thank you!”
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Please forward your query, contact details, ID number and on the Subject title, please writing ' Community query' to [email protected] Our consultants will check your profile and advise about the fees you are being charged.
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If you performed an EFT on Monday, you should be getting your funds today, if you did not recieve them, please forward your query, contact details and ID number to
[email protected], Please on the subjetc line include: 'Community Matter', so we can investigate this matter.
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This feature enables you to stop payments made by cheques and debit orders without visiting a branch. *Please note: 1. Your message will be sent to your branch and will be actioned the following business day 2. All stop payments should be loaded 24hrs in advance
Click on Account services
Click on Stop payments from the sub-menu
Select the account you want to transact from.
Enter your home telephone number
Enter your work telephone number
Enter the cheque or debit order numbers
Enter the amount
Enter the date of the cheque or debit order
Enter the beneficiary or payee name
Select a reason for the stop payment from the drop down menu
Click on Continue
Check the details on the confirmation screen
Click on Confirm
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You need to visit the branch to query about your card issue. Was your app initially linked to your email address or your mobile number? If it was linked to your mobile number, you need to visit your nearest branch to link your app to your email address.
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Apologise for the late reply. Did your money reflect? If not, please let me know so I can investigate. Please do not supply your ID number or telephone number on Community as it is a public platform.
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I apologise for the back and forth, I need you to resend the email to [email protected] On the subject line please include : Community Matter (diana). I will then ask the team to help resolve this matter. Again, I truly apologise for the inconvenience.
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