Capitec announced early this month that it has partnered with SA Home Loans to launch its full home loan offering.
The simplified process enables consumers to complete the application on the online portal for under than five minutes.
In 2015, Capitec in partnership with SA Home Loans offered a home loan product, however, this didn’t work.
Gerrie Fourie, Capitec CEO says the home loan offering was not integrated into the bank’s Global One facility hence it didn’t work. This facility offers a range of transacting, saving and credit options, as well as a funeral plan. Fourie was speaking at the BizNews Rational Radio Webinar (see below).
Capitec Home Loans
“A year ago, we relooked at the partnership, and refined the offering such that its integrated into our banking products.”

Fourie says the bank’s speciality is sales and distribution, and with 15 million clients, they would focus on what they are good at.
Branded Capitec Home Loans, however, it is SA Home Loans who will assess and approve credit applications. SA Home Loans will carry the risk, as such, the loans will sit on its balance sheet.
Consumers can apply online through Capitec and the process takes under five minutes. Applicants will be able track the progress of their application from start to finish.
“The home loan product will not contribute a huge income for the bank. However, this will help us acquire the top-end of the market clientele,” says Fourie.
Capitec has 15 million clients, and together with SA Home Loans, the partnership is poised for growth.
He says together their home loans market share (from the old partnership) is very small, and not even a percent.
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From the old partnership, the highest loan amount granted was R2.5 million. With the new offering, consumers can apply for home loans valued at R500 000 and up to R5 million.
The sweetspot is approximately R2 million, with R5 million being the top-end of the market. Consumers will also benefit from the highly competitive linked interest rates from 6%, and pay the loan over 30 years.
Since launching, over 7 000 applications have been processed.  “We hope to unlock potential in the approximately R500 000 price band where there is demand.”
The property market can get a boost in townships where 80% of title deeds are now outdated. Through the Capitec’s CSI projects, and working with various municipalities, 150 title deeds a month have been issued. It costs between R2 000 and R3 000 to issue a title deed.
He reckons if land held under trust or chiefs have title deeds, people can buy and sell thus creating wealth.
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