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Capitec Bonds of Up To R5 Million

Since 2014 Capitec Bank have worked with SA Home Loans (SAHL) to offer their clients access to bonds. Essentially, Capitec Bank has been operating as a bond originator.

Now Capitec Bank has adjusted their bond offerings with simplicity and client information sharing in mind. The application process can be started in around 5 min and is not linked to the prime or repo rate. Capitec also say that a lot less paperwork will be required and the process relies a lot on multiple choice questions answered via their website.

‘They will now be offering bonds of up to R5 Million over up to 30 years’

They will now be offering bonds of up to R5 Million over up to 30 years. The product will still be in conjunction with SAHL but will be branded as a Capitec Home Loan.

Lower Interest Rates

Capitec Bank says that they are offering finance at as little as 6% and that the rates will not be linked to prime or the repo rate. Instead of Repo the rate will be linked to the Johannesburg Interbank Agreed Rate (Jibar). The rates will tend to do similar things (eg. if Repo goes up then Jibar will too) but Jibar tends to be slightly faster in changing before the Repo rate and can change quarterly (every 3 months).

Saving On Legal Fees

Capitec clients can look forward to a 50% saving on lawyers fees (as long as they use one of the SAHL legal panel members). Since these fees can be high this will probably be a significant incentive to make use of their bond offering.

Government employees can qualify for even more discounts (including those who switch over to Capitec from other bond providers).