Business News: Capitec joins the home-loan market in long-awaited move

Business News: Capitec joins the home-loan market in long-awaited move

- Capitec has announced on Tuesday that it has officially entered the home loans market

- Before now, the nation's most popular bank didn't offer secured lending to finance larger purchases

- This comes after a low-key launch of 'purpose lending' to finance vehicles earlier this year

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Capitec has announced that it has joined the home loans market on Tuesday afternoon, great news for clients of the highly popular bank.

With the highest number of clients, Capitec has not offered up secured lending to procure homes and only recently launched 'purpose lending' to fund vehicles in April.

The bank announced a partnership with SA Home Loans and is offering interest rates from 6%, a whole percentage point below prime, which places Capitec in direct competition with other major banks who have been in the game for decades.

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Capitec has announced that is will now be offering home loans. Image: Pexels
Source: UGC

While the home loan has been named Capitec Home Loans, it is SA Home Loans and not the bank itself which will actually assess and approve customers.

The loan will be digitally-led and is offering finance for properties up to R5 million over the course of 30 years. In addition to promising an answer in five minutes, a 50% discount on lawyers fees.

News24 reports that Francois Viviers, executive of marketing and communications at Capitec, commented on the decision:

"We've continually received requests from both clients and the public asking us to challenge the norms of home loans as we have done with banking."

Meanwhile, reported that Capitec Bank has been ranked South Africa's "Best Bank" for the second consecutive year.

This is after a survey by media group, Forbes. Forbes partnered with the market research firm Statista to measure the best banks in nearly two dozen countries, surveying over 40 000 customers. Capitec Bank CEO Gerrie Fourie said:

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"We’re continually challenging the norms of traditional banking to bring our clients a simplified, affordable solution that puts them in control of their money. A client-centric focus, along with the pursuit of relevant innovation has made it possible to transform what was originally a grudge purchase into a service that truly helps people better manage their financial lives."

Capitec Bank was established on 1 March, 2001 and listed on the Johannesburg Stock Exchange a year later.

The banking institution has risen over the years to compete with some of the biggest banks in the country.

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