The new USSD home loan affordability calculator by Nedbank will see consumers in the entry level market benefit from the low interest environment, making property investment and ownership a reality.
“An initial study conducted on consumers in the LSM group of 1 to 5, found that most respondents didn’t believe that owning a home was within their reach,” says Bruno Ching’andu, Head of Customer Strategy at Nedbank Home Loans. “What we found is that they are either inadequately informed, or uncomfortable to use mobile apps which require data, where affordability tools usually reside,” he says.
The USSD Home Loan affordability calculator leverages the simplicity of mobile text code strings, like those used for loading prepaid data, airtime or electricity. The use of this fundamental technology forgoes the need to install an app or go online, removing any barriers associated with technology.
To access the mobile affordability calculator, the user dials *120*001*123# and waits for prompts.
In a few easy steps, the applicant is requested for their monthly income and expenses, in response the applicant receives an indication of the maximum amount they qualify for and can afford based on the correctness of the information provided.
As they enter their details, they also have the option to speak to a consultant who will take them through the entire process, from saving for costs, getting a full pre-approval, to applying and securing a home loan.
“In many cases, consumers find that the bond they qualify for is even less than what they might pay in rent for the same property,” Ching’andu says. “Over time, the money they put into their property, whether it’s their primary home or a buy-to-let investment for first time buyers, is accumulated and helps grow long-term wealth.
“With this year’s Government announcement of the total waiver of transfer fees for properties priced under R1 million, FLISP subsidy ranging between R27 000 - R127 000 for first time buyers earning below R22000 as well as interest rates being at their lowest level in over 50 years, more South Africans can now use this digital tool as their first step to home ownership,” he concludes.
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