Stanbic Promotes Home Ownership
Pauline Dikuelo | Monday August 6, 2018 12:15
Speaking to Monitor Business, Stanbic Bank head of products, personal and business banking Wabo Moswate said the campaign, which started in June this year, addresses the biggest hurdle of home ownership.
“We have identified that one of the biggest hurdles to home ownership locally is the deposit, bond registration, evaluation fees and we want to help in this regard because our aim is to help people get their own homes,” he said.
According to Moswate, the main aim is to help the middle to low income have their own homes. He noted that property is a long-term investment and can be used to generate passive income through rent. In addition, he said it can be used as a capital gain, where one buys property at a cheaper price and sell it for a higher price.
“One of the main challenges is that, people have a habit of defaulting and don’t consult the bank. At Stanbic we closely monitor them and encourage them to always consult us to maybe restructure the payment plan because there are options,” he said.
Moswate said there is a trend where people do not qualify as they already have existing loans which stand in their way by the time they want to invest in property, adding that some have a lot of debit orders.
However, he noted that the property market is starting to pick up urging people to start investing in property as prices have stabilised. He advised people to be cautious and spend a lot of time researching to understand about the property they want to buy.
Currently, Stanbic has different components of home loans, including the outright purchase where the bank builds a house that an individual qualifies for as well as equity release. The bank finances up to 90% within Gaborone and surrounding areas with 30km radius including Tlokweng, Mogoditshane just to mention a few.
For one to get a loan from Stanbic, they need to bring an offer letter, payslip to determine affordability, necessary documentations including identification documents and formal evaluation report that shows the value of the property.
“We can finance even people who don’t bank with us, but will have to then move their account here because we will be having a long-term relationship with the individual,” he said.
In addition, he said that youth participation is visible, but there is a room for improvement. He urged them to grasp this opportunity, highlighting that even property developers are now focusing on the low to middle income categories.