A significant proportion of urban dwellers in South Africa do not own homes. The majority of metropolitan dwellers are renting homes, some at very astronomical prices.
High rentals were already straining the average South African population. COVID-19 restrictions have added more woes to the renting population.
Most employees who have been affected by the ongoing lockdown are apprehensive with regard to the payment of their rentals.
There are homeowners who may have purchased their homes through home loans. Sadly, the prevailing situation has affected even those who seek to repay home loans.
A number of financial institutions have come up with loans that can assist its customers to trudge through this difficult situation.
If you are struggling with your rent and home loan, take your time to read this article.
These relief efforts serve to cushion you against the harsh economic conditions prevailing. As such, if affected by COVID-19, contact your bank.
The ABSA Home Loan Payment Relief Plan gives you a 3-month non-payment period.
Interests, service fees, insurance will accrue and be capitalised.
According to ABSA, the inclusion of insurance premiums as part of the payment relief plan only applies where the insurance premium is already part of the monthly Home Loan instalment.
At the end of the payment relief plan, your loan terms will be extended to cover all capitalised amounts.
These terms will be recalculated to ensure your new payment amount is not greater than your current repayment amount.
If you have an ABSA Home Loan account, you qualify for this relief provided your payments are up to date.
The following exclusions apply – if you are currently:
The payment relief plan runs for three months. Suspending all services fees on the Home Loan Payment.
If your Home Loan monthly repayments already include Insurance Premiums for Homeowner’s Comprehensive Insurance, Home Loan Protector Plan and Life Insurance, you will still need to pay service fees and insurance premiums whilst in the home loan payment relief plan.
First National Bank (FNB) is stepping up its efforts in a bid to assist those affected by the Coronavirus pandemic.
According to a press release by the bank, customers whose income has been affected this pandemic can apply for relief on its banking APP via the COVID 19 App.
If you bank with FNB and in dire need to cover your rental costs or maybe home loan, you have to go to the banking app for more details.
Nedbank is offering several options to its clients based on individual circumstances. As such, it is encouraging clients to contact the bank to discuss their individual circumstances.
The bank will review the current loan repayment commitments.
A temporary payment arrangement has been set up by the bank to allow its customers to repay a reduced amount over a limited timeframe.
These cases will be reviewed individually with the appropriate solution recommended on merit. There remains an obligation on the client to pay their loan agreements.
According to the Nedbank website; If there are clients requiring an early release on their investment funds to supplement any cashflow challenges experienced during this period, Nedbank will waive the penalty fee for up to the value of R200 000 at an overall portfolio level.
This offer applies over the next three months between 24 March 2020 and 30 June 2020 unless otherwise communicated (capped at R200 000).
These are difficult times for all. read widely on all COVID 19 relief efforts. If you are in good standing with your bank, liaise with your bank. Learn how you can be assisted to offset your debts.