Future Us Plus
20% future use amount at no cost
Future Us Plus
The enhanced Future Use offers you benefits with a 20% future use amount at no cost. An additional 20% Future Use Plus will be added to the application (Irrespective of Future use already being part of the application).
You pay for the Future Use amount and is responsible for the full registration costs.
The normal process will be followed according to the Future Use offer.
You will not incur additional costs should they require funds in the future.
Benefits
Across Secured Lending Cluster continuum.
Register 20% additional upfront Future Use Amount with every loan.
Attorneys on board to cover 20% - in SLA.
Save registration time down the line (Further Loan).
Quicker access to funds when needed.
FAQs
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Q. What does the Special Condition say?
Future Use Auto Inclusion Special Condition
The Customer has agreed to the Lender’s Future Use Auto Inclusion offering. The Customer therefore understands and agrees to a mortgage bond being registered against the Property for an amount that is 20% above the Principal debt (“Future Use Auto Inclusion Amount”). The Repayment amount is based on the Principal debt. The Customer further agrees and understands that the Future Use Auto Inclusion Amount can only be accessed after the first 6 (six) months of the mortgage bond having been registered, and subject to the Lender’s credit policies, affordability assessments and repricing. The Lender and the Customer agree that the Customer will not be liable for bond registration costs associated with the Future Use Auto Inclusion Amount. The Customer will however be liable for bond registration costs associated with the Principal Debt. Should the Customer wish to register a Future Use amount in excess of the Future Use Auto Inclusion Amount, the bond registration costs for this excess amount will be for the Customer’s own account.
Q. What is the purpose of registering an additional 20%?
Trends show that customers generally come back within the loan term to register additional amounts they require. This is to save customers time and additional registration costs when they need funds. It is also a great emergency buffer if customers need access to funds for uncertainties. Please keep in mind affordability and credit criteria must still be met to ensure that we are responsible in our lending to customers.
Q. Can a Customer opt out and then opt in again prior to registration?
Yes, the sales consultant will have to raise a service request, requesting for the condition and the loan amount to be changed to include the 20% Future Use Portion.
Q. How will the Special Condition be loaded?
It will be auto-generated.
Q. How will the FU 20% be loaded?
The same way it is currently captured. An excel spreadsheet will be available to calculate the 20% Future Use Portion.
Q. Can a Customer request for a portion of the Future Use Amount?
Yes, they can, the current Future Use rules still apply, the Customer can apply provided it is after 6 months and the customer meets all the qualifying criteria.
Q. In the Scenarios provided, the 3rd scenario, if a Customer asks for R100 000 Future Use, do we then add the 20% Future Use Plus onto the Customers Principle Debt plus the Future Use amount requested?
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| As is FU | 20% FUP | Future Use+ 20% FUP |
| Loan amount requested | R600 000 | R600 000 | R600 000 |
| Customer Requests FU | R100 000 | R0 | R100 000 |
| Total registration | R700 000 | R720 000 | R840 000 |
| Total registration | R700 000 | R720 000 | R840 000 |
The 20% will be added onto any total amount requested by the customer (whether Future use was requested or not). The 20% is added to any Customer amount requested, so if the Customer has requested future use as part of their normal application the 20% is added on that. The Customer may come back for further lending which is why we state any amount in excess of the 20% will be for the Customer’s account.
The Sales Consultants / Bankers should be having a conversation with the Customer to advise them that we will register 20% FU+ with no additional cost to the Customer, however, if they still required an amount that is in excess of the 20% then the Customer will bear that cost.
Q. How to valuations work?
For FU we do not apply the 12 month rule, so if the customer requests to avail of the Future use funds anytime from month 6 a new valuation MUST be requested.
Q. Why is Foreign Choice applications excluded?
Foreign Choice applications are excluded to comply with no additional Further Lending as per Exchange Control requirements.
Q. Why is One Account excluded?
As the product is being decommissioned, no further lending applications or new One Account registrations are permitted.
Q. What happens if the amount is not captured (the 20% additional)?
The Loan will not have the 20% Future Use included. Reports will pick up to investigate if any breakdowns occur in the process.
