Stanbic introduces property refinancing options

| Friday June 18, 2010 00:00

'At Stanbic Bank, we are committed to providing our clients with banking solutions that fit their needs and also allow them to grow hence moving them forward.

'The various Equity Release options offer endless opportunities for growth. Clients will be able to finance business start ups or acquire that second home they have always wanted, just to mention a few,' says Lerato Chana Sekgororoane, the head of personal banking at Stanbic Bank.

The first option which is Equity Release allows clients who have finished paying their property loans to bond their unbounded property in order to acquire assets today. The bank lends the client up to 90 percent of the value of the property.

The second option, which is Re-Draw, allows existing home loan clients to borrow the difference between what they currently owe and the registered bond figure: 'For example, when a client has an initial bond with us of  P500,000, and they have paid off P200,000. They can apply to borrow that P200,000 that they have paid back', explains Sekgororoane.

The third option, which is Further Advance, allows clients to increase the original loan amount to an amount higher than the registered amount: 'As we all know, property appreciates with time, which is why it is such a worthy investment. This option allows clients to borrow to the value of their property. For example, if someone purchased a property for P500,000 two years ago and it is now worth P700,000, and the balance on their loan is P300,000, the client can apply to borrow the difference between the value of the property and the outstanding loan balance.In this case, the client could borrow P400,000,' says Sekgororoane.

The refinancing options given by Stanbic Bank are not only innovative, but also give clients the opportunity to let their investments work for them in a positive way. The financial environment which is recovering from rough times has seen many financial institutions tighten the ropes on loans given to clients; this endeavour relaxes the strain felt by many clients.