Absa allows mortgage skip

Mila

Mila

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WTF!!!!!!!!
I'm sorry this is a Big no!!:mad: First we reward them for having HIV babies now you can stay for free to!! This is not helping the fight against HIV.:sick::mad:


Johannesburg - It might be slick PR or altruism, but South Africa's largest retail bank, Absa, is allowing HIV-positive clients to skip mortgage payments if they are taken ill.

According to Absa, it has sourced insurance to cover mortgage instalments for lower-income customers unable to work due to Aids-related diseases as part of its 110% MyHome home loan offering.

The product will now also be available to households earning less than R15 142 per month, up from R11 000.

According to Luthando Vutula, managing executive of Absa Home Loans, the offering is made in partnership with external parties. "Mortgage payments will be covered [by insurance] until you get better," said Vutula.

HIV/Aids voluntary counselling, testing and treatment programmes as well as borrower education will be provided by the banks' external partners. Vutula declined to name the partners in the endeavour.

Absa said it has intensified its focus on the affordable housing market. Taking into account that no more than 30% of a household's monthly income may be spent on a bond, as per national credit regulations, a household earning R15 142 per month would be able to afford a house worth up to R450 000 if no deposit is paid.

"Pricing would have to take into account that your customers can't pay a deposit and are more risky," said Tracy Brodziak, an analyst for Old Mutual Investment Group South Africa. The interest customers will have to pay could be much higher than normal, she said.

However, Vutula insisted clients would not be burdened with higher interest charges.

"For these things to be covered, other institutions, some international, have to be part and parcel of this," he said.

Although 100% home loans have been on offer, stricter lending criteria by banks meant approvals have been much lower than in the past.

However, these criteria do not prevent customers from obtaining homeloans, said Vutula. "If you can afford it, there's absolutely no way you can't get it," he said.

The Absa product covers bond costs (about 4% of the total purchase price). Borrowers also do not have to pay a deposit
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http://fin24.com/articles/default/d...1518-2386-2432_2576032&IsColumnistStory=False
 
I really do not see the fuss.
Insurance products like this will either fail, or not make much economical sense anyways. I doubt you can get the cover ( or would take it anyways ) unless you are HIV+
Since the premiums cover the expenses, the premiums would have to be high enough to justify the risk.

The biggest problem I have is with this:
However, these criteria do not prevent customers from obtaining homeloans, said Vutula. "If you can afford it, there's absolutely no way you can't get it," he said.
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Which is pure, undiluted hogwash. You can be able to afford it, but have a string of defaults, judgements and a sequestration on your record, and you WILL NOT GET IT - regardless of affordability.
ABSA spokespeople should know better.
 
Moederloos said:
I really do not see the fuss.
Insurance products like this will either fail, or not make much economical sense anyways. I doubt you can get the cover ( or would take it anyways ) unless you are HIV+
Since the premiums cover the expenses, the premiums would have to be high enough to justify the risk.

The biggest problem I have is with this:


Which is pure, undiluted hogwash. You can be able to afford it, but have a string of defaults, judgements and a sequestration on your record, and you WILL NOT GET IT - regardless of affordability.
ABSA spokespeople should know better.
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oke.. Cool. Thanx.
 
And what happens when the HIV infected bread winner of the family lapses on taking their ARVs and dies? Will Absa give the mourning family the house or kick them to the street?
 
Vote with your wallets and leave Absa. They'll just jack up their service fees to make up for the shortfall in income.

On first sight, this seems to be a good thing, but thinking it over -

1. What happens should the payee keep on getting ill, and just keep on skipping mortgage repayments?
2. Of course interest will accrue on said mortgage account that is being skipped.
3. Those inn-sewer-ants companies will start to feel the pinch, and jack their service fees up...

and it'll be a vicious circle.
 
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JungleBoy said:
What the hell are you mad about? How is this going to affect you the HIV- person?
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:confused:

I do understand what moederloos is saying that they have to qualify for a loan first. And at the salary amount they are saying what will you buy.

I’m pissed because this is the accountability thing again. You should not be rewarded for being HIV positive you should be rewarded for not having it. This would encourage good behaviour.

The HIV policies in this country is like bad parenting, handing out chocolates for bad behaviour.
 
The_Librarian said:
Vote with your wallets and leave Absa. They'll just jack up their service fees to make up for the shortfall in income.

On first sight, this seems to be a good thing, but thinking it over -

1. What happens should the payee keep on getting ill, and just keep on skipping mortgage repayments?
2. Of course interest will accrue on said mortgage account that is being skipped.
3. Those inn-sewer-ants companies will start to feel the pinch, and jack their service fees up...

and it'll be a vicious circle.
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+10
 
Mila said:
:confused:

I do understand what moederloos is saying that they have to qualify for a loan first. And at the salary amount they are saying what will you buy.

I’m pissed because this is the accountability thing again. You should not be rewarded for being HIV positive you should be rewarded for not having it. This would encourage good behaviour.

The HIV policies in this country is like bad parenting, handing out chocolates for bad behaviour.
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It'll actually encourage people to get HIV, so that they'll have an convenient excuse just to skip payments. I'm not attacking HIV people, just pointing out the obvious - because people will do anything in order to make money. Can you say fraud? Because somebody will purport to be HIV+ in order to skip payments whilst that same person are not even HIV+ at all.
 
The_Librarian said:
It'll actually encourage people to get HIV, so that they'll have an convenient excuse just to skip payments. I'm not attacking HIV people, just pointing out the obvious - because people will do anything in order to make money. Can you say fraud? Because somebody will purport to be HIV+ in order to skip payments whilst that same person are not even HIV+ at all.
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Ai...
 
Mila said:
I’m pissed because this is the accountability thing again. You should not be rewarded for being HIV positive you should be rewarded for not having it. This would encourage good behaviour.
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Having to pay for insurance against a disease is not a reward...you pay for it. Insurance companies do not insure events where they end up coughing up more than what they are getting.
 
The_Librarian said:
It'll actually encourage people to get HIV, so that they'll have an convenient excuse just to skip payments. I'm not attacking HIV people, just pointing out the obvious - because people will do anything in order to make money. Can you say fraud? Because somebody will purport to be HIV+ in order to skip payments whilst that same person are not even HIV+ at all.
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Did you not see the part about them having to pay for insurance ? Can't just claim to have HIV, you will have to declare it upfront and cough up the premiums on a monthly basis.
 
JungleBoy said:
Having to pay for insurance against a disease is not a reward...you pay for it. Insurance companies do not insure events where they end up coughing up more than what they are getting.
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See this is not against a disease. That you use condoms for.
This will only be exploited.
 
Absa's two main charities are AIDS and child headed households. I have no doubt that some of the debt will be ensured and another portion will be written down as part of its CSI programme.. if that's possible in terms of tax. I just don't think that the scheme is workable, because it will be difficult to tell whether the person isn't working because they have become ill, or if they just aren't working. I haven't seen the contract, and they may have all kinds of criteria that you need to prove before your payments are taken care of.. but when I saw this ALL kinds fo alarm bells went off. How on earth will they manage all of this. Maybe client will need a doctor's note proving that they cannot work, and that the payments will only be taken care of in so far as they also keep their job!?!?
 
alf101 said:
Ok, but please don't say that people deserve to be HIV+. You can get it from your boyfriend today, or your dentist, or from a transfusion etc...
Many people in this country do not know any better, you can't blame them for getting it.
Blame the education system if you must.
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It seems like if Mila had her way, people with HIV would be shot on sight. What she doesn't take into consideration is that the person getting HIV is inmost cases a victim of some sort, i.e. rape, cheating, negligence etc.
 
JungleBoy said:
It seems like if Mila had her way, people with HIV would be shot on sight. What she doesn't take into consideration is that the person getting HIV is inmost cases a victim of some sort, i.e. rape, cheating, negligence etc.
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Sorry to burst your bubble...
But it is IMPOSSIBLE to get AIDS by cheating....

;)
 
JungleBoy said:
It seems like if Mila had her way, people with HIV would be shot on sight. What she doesn't take into consideration is that the person getting HIV is inmost cases a victim of some sort, i.e. rape, cheating, negligence etc.
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In most cases they actually just ***** around, or abuse drugs (used needles, etc etc) ;)
 
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