16 October 2008
In a move which has caused consternation amongst its customers, Absa has responded by saying that it affects only those customers who use the 261 Flexi facility - or less than 17% (130 000) of its customers. It does not mean that homeowners will now not be able to access the equity, but rather that they will have to come back to the branch where a re-assessment regarding the value of the property and their ability to take on the debt will be done.
This change has been motivated by falling residential property prices over the last six months (banks need to preserve their equity), and the need to protect customers from over extending themselves. In short, a tightening of lending criteria in terms of the National Credit Act.
See Absa Home loan shocker and the full Absa statement
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