It is not just Standard Bank
All banks jolted administration fees for home loans.
There has been an outcry over Standard Bank's home loan administration fee hike but it is not alone in jolting prices. An investigation by Realestateweb.co.za has found that the other big three have either increased or plan to hike their fees.
Absa increased its monthly administration fees to R28.50 from R5.70 for home loans valued at more than R500 000 in August 2008 due to a rise in "costs from funding costs to other operating expenses", said Luthando Vutula, managing executive of Absa Home Loans. However, customers who took out home loans of less than R500 000 before the NCA are still paying a legislated monthly administration fee of R5.70 whether or not the customer is insured with Absa or not. These loans fall under the Usury Act, he said.
Customers who took out a home loan post NCA and have insurance with Absa pay a monthly administration fee of R28,50 those that do not have pay R45,60. My Home Customers with Absa (customers that earn a single joint income less or equal to R7 500) pay R13,68 while My Home Customers outside of Absa pay R22.80.
Vutula said Absa will not be increasing administration costs for 2009.
Jan Kleynhans from FNB Home Loans said customers who entered into a home loan agreement before the NCA are not subject to an increase of administration fees and pay a monthly charge of R5.70. From July, new home loan customers' administration fee will increase from R39.90 a month to R52.
Kleynhans said this administration fees had not been increased in the past two years and the bank does not differentiate between customers who have FNB insurance and those without.
Nedbank also charged R5,70 for bonds valued at less than R500 000 before the NCA and bonds valued at more than R500 000 were charged at R39,90.
Pramod Mohanlal, general manager for customer management at Nedbank Home Loans said from March 2009, customers with bonds of less than R500 000 are now charged R39.90 in administration fees if insured with Nedbank.
New and existing post NCA customers with external insurance pay R57.
Article from: www.realestateweb.co.za