As South Africa’s largest home loan provider, it is important to us that you understand how the fees and interests rate of your home loan account work. To help you to manage your account better, we’ve put together a short guide on how interest rates and fees work and how they affect your home loan.
Interest is the cost of borrowing funds from a lender and is charged to cover the cost and risk of lending money as well as to compensate the lender for the use of their money in the purchase of your home. The interest rate is usually expressed as an annual percentage and is calculated daily on the amount owed. The interest charged is added to your account monthly and a portion of your monthly repayment is used to repay the interest charged. Your interest rate is personalized and will depend on how well you have managed your finances in the past as well as whether you can reduce the risk to the lender. The higher the risk of lending, the higher the interest rate will be and the more you will have to pay to own your home
Your personalized interest rate is determined using the following information:
Your credit record and payment behaviour (A good credit record indicates good financial management and reduces the risk of losses being incurred by the lender)
The deposit you are willing to pay (A deposit shows good previous financial management allows you to share the risk with the lender)
The relationship you have with the lender (A lender with which you have accounts will have additional insights on how you manage your finances)
Your willingness to move your relationship (Taking up additional products allows the bank to get to know you better)
The amount of debt you have (A high amount of debt relative to your income indicates that you may be highly impacted by interest rate increases or unexpected life events)
The property use (The use of the property changes the risk as it is more difficult to sell a property with a specialised use such as a guesthouse)
If you are purchasing the property in your own name (Juristic entities such as Trusts or companies increase the risk to the bank as these entities can dissolve prior to the loan being repaid)
There are certain aspects which a lender is prohibited by law from pricing by such as race, religion, ethnicity etc. These factors do not determine the interest rate charged on a home loan.
Since pricing is risk based all the variables that go into to the calculation are unique per customer, asset and loan parameters. It is therefore extremely difficult to compare customers rates with each other without knowing the underlying characteristics. However, should 2 customers exhibit the same risk and loan characteristics their interest rate pricing would be identical.
Managing rising interest rates
Home loan interest rates are linked to the repo rate, which is the benchmark interest rate at which the South African Reserve Bank lends to registered banks. This rate in turn impacts the rates at which banks lend money to you, an increase in the repo rate will increase the interest rate as well as the minimum repayment charged on your home loan. Similarly, A decrease in the repo rate would have the opposite effect on your minimum repayment.
To understand the impact of changing interest rates on your monthly Home Loan instalments, you can use our home loans calculator.
However, it is important to know that Standard Bank will not charge a higher interest rate than originally agreed to unless you enter into a new or amended agreement (typically if you take further lending). If you do not want changes in the repo rate to affect the interest rate charged on your home loan, you can enter into a fixed rate agreement of up to 3 years.
Understanding your fee pricing
Standard Bank charges an initiation fee (once off) and a monthly service fee. All customers receive pricing communication once yearly 30 days before pricing changes take effect. Monthly fee pricing can change depending on changes that are made to your account. Our annual pricing guide details these scenarios. You can also look at your biannual statement to review all fees charged to your account.
Tips to help you paying your home loan off sooner and save on interest
Increase your monthly repayment to above the minimum repayment.
Over time you will save a substantial amount on the interest charged.
Reduce the term of your loan.
A term reduction increases the repayment amount and reduces the interest charges on your account.
Use your AccessBond facility.
Put additional savings in your AccessBond facility and use it when you need it. Interest is calculated on a daily basis, so you save on interest for every day additional money is placed in your AccessBond.
For more information on managing your home loan, visit; https://www.standardbank.co.za/standardbank/Personal/Borrowing/Home-Loans?cid=SO_LAuC1
For information related to your home loan fees, please visit; https://www.standardbank.co.za/static_file/South%20Africa/PDF/Personal%20Pricing/2019/Home_Loans_Pricing_2019.pdf
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Personal finances are hard to talk about at the best of times, and financial distress is a subject many of us prefer to avoid. For homeowners, hard times include the fear of losing their homes, due to unpaid home loan instalments.
Very often, when home loan re-payments become too much, we react in different ways. Some of us may deny that there’s a problem, hoping that it will all work out in the end, or we try to solve it through additional credit, or worse, sign-up with unscrupulous lenders. All the while, we are charged interest, incur fees and our credit scores are affected.
Standard Bank is here to help you when you are in distress. In actual fact yearly, Standard Bank assists its home loans customers in distress with over 77 000 payment breaks or lower payments and 79 000 restructures and term changes which allow customers to recover arrears and reduce monthly repayments. Other than more short term programs to assist customers there is a way to avoid the anxiety of a more long issues in paying.
Standard Bank’s EasySell is a solution for homeowners in distress. Over the past 3 years the EasySell program has assisted over 4000 customers save close to R3.6bn in debt. Through EasySell, we provide homeowners who are in financial distress help with selling their property, settling their home loan and guidance on rehabilitating their credit record. You may even gain additional cash flow to rebuild your wealth.
Remember, giving the bank timeous notification of the problem can make all the difference. After all;
It is in the bank’s best interest to help you pay off your bond,
You are not the first person to find yourself in this situation, there are products and processes for exactly these circumstances, and
Acting as quickly as possible before things spiral out of control can save your finances, and your credit record.
Whether you’ve already missed a few re-payments, or you are concerned that you are about to, contact us to assist.
For more information on EasySell, please visit; https://www.standardbank.co.za/southafrica/personal/learn/easysell-property-sales-in-financial-distress
Alternatively, to initiate the EasySell process, you can;
SMS the word “Assist” and your account number to 3149,
Email us at ESLeads[email protected] or
Call us at 0860 007 724
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Thank you for your inquiry. in order to set up your 3D secure code, you need to call into our Card Division on our toll free number 0800 020 600 and they will assist with all matters regarding to 3D Secure Code.
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You should be able to Top Up your V irtual Card on the app. Please ensure that your EAP limit from the transactional account you'd be topping up from is not set on zero. To increase your EAP limit you just have to call into Customer Services on 0860 123 000 , we w ill assist you in setting up your limit immediately over the phone.
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Thank you for contacting us.
We can assist you by means of financing the vehicle, so you'd have to apply for Vehicle Asset Finance with us and depending on how much you qualify for, you can then buy the car of your choice based on your finance amount. For more assistance please call into our Customer Care on 0860 123 000 Option 4 or alternatively go inside your nearest branch with your identity document, 3 months bank statement/payslip as well as your proof of address.
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Good Morn ing Liamp
An instant money voucher is created and available immediately. Did you eventually receive the voucher?
Mobile network issues.
Voucher was sent to the incorrect number.
Please let us know if it was resolved.
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H i Reddy
We apologise for any inconvenience casued, we have included a solution to your concern and we hope it will help you understand and prepare for the next festive period.
Please shout if you need any further assistance.
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H i Kurt
We apologise for the inconvenience. Please find the below link in referrence as to why debit orders are usually raised earlier in the festive period.
Hopefully this will provide more clarity.
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H i Mahlangu
Happy to assist you. You would have to call into our call centre and speak to a consultant from General Banking to link your RCP on the app, they will do it for you immediately over the phone. The number is 0860 123 000, alternatively you can link it in your nearest branch, please be sure to take your identification document with.
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H i David We apologise for the inconvenience, we are aware how frustrating it is to deal with these unauthorised debits. We are however as a bank combatting this and have taken measures to help prevent these debits. Please see below various aids to help combat unauthorised debits. Helping you to manage your Debit Orders Month end is usually the time when we check our budgets and scrutinize our statements. A lot of us have debit orders that come from our accounts during this time, and it is important that we keep track of these, by using the banking app or online banking. If you come across a transaction that doesn’t look familiar, or that you may want us to look into, we’ve put together a quick guide to help you. Step 1 Check what the payment is for. Recurring payments come in different forms; Debit Orders are agreements with other companies to debit your account regularly, based on a service e.g. gym contracts, policies and investment accounts. They can be for fixed or changing amounts, as with phone contracts. You might also have set up your own Scheduled Payments on Online Banking or using the Mobile Banking App. This is not based on an agreement as such and is completely at your control e.g. monthly rent payments that you schedule. Stop Orders are also an example of regular payments and are usually arranged in the branch. This is an instruction that you give to us, to transfer funds on your behalf regularly e.g. kids’ pocket money etc. Step 2 Now that you have an idea around the transaction, let’s help you manage it. Our helpdesk on 0860 123 000 can help you to stop, reverse or investigate any debit order on your account. To reverse a debit order is free within a stipulated minimum time (usually 40 days) and the funds will be returned to your account within 4 business days. We can also help you to stop future debits on your account. This may come at a minimal cost and will only work if you have the date, amount and reference number of the debit. Lastly, we can help you by investigating the name and contact details of the company who is debiting you (in case you want to verify before acting). This comes at a minimal cost and takes a few days for us to investigate and give you feedback. Some extra information about debit orders & debicheck. Debit order: A debit order is a payment that your bank facilitates, on the basis of an agreement between you and your service provider. The terms of that agreement determine when the supplier can debit your account, how much they can debit (if fixed or variable) and other issues like when penalties or double debits can be taken. When we help you to reverse or stop a debit order, we take it that you have a right to do so according to your agreement and that you understand the possible impact of doing so (e.g. the risk of an insurance policy lapsing). It is always a good idea to speak to the company debiting you first, to ensure that they can assist with your query, cancel your debit agreement or change your details, with them. Debicheck: We have added a function on our app called Debicheck. This allows customers to authorise debit orders on the app before they are loaded. This function however is only applicable to companies who have registered for Debicheck. We hope this was helpful. Kind Regards Kutlwano
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Hi Jacqui hope you're well. To link your VAF account to the app, you just have to go to the more tab at the bottom right of your screen > click on "Explore Products" > scroll down to Vehicle Asset Finance, click on "VAF" tab and there will be an option to "Add to dashboard". Please inform us if you have any trouble.
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