The loans of homeowners who have bonds with NBS will not be affected by the sale of the NBS home loan book, owned by BoE, to First National Bank (FNB).
The middle-income residential home loans portion of the NBS book was sold to FNB for R12 billion last month. The 103 632 loans involved have an average value of R110 000.
Don Bowden, a spokesman for BoE, says there will be a three-month transfer process during which BoE staff will work with FNB to migrate customers across to FNB Homeloans as quickly as possible.
During this 90-day handover period, BoE will continue to administer your home loan and will charge FNB a fee for doing so.
Your rights and the costs of your home loan will remain as is, he says.
If you have homeowner's insurance cover through NBS, FNB will acquire your policy and it will be serviced by its insurance division, Outsurance. Once again, your rights and the cost of your insurance will remain the same. Any life cover that you may have taken out with BoE will remain with BoE, which will continue with the life assurance business.
Both NBS Homeloans and FNB Homeloans will be communicating individually with each client on how they will be affected by the transfer of their accounts, Bowden says.
If you submitted an application for a bond to NBS Homeloans just prior to the sale on March 14, your loan will be issued by FNB. All successful loan applications are being passed onto FNB which will grant the loans on the same conditions as NBS offered.
You will be contacted to ascertain whether you want to move to FNB.
If you have an NBS home loan and have not yet heard from your bank, don't worry. Bowden said letters were sent out at the end of March.