BUSINESS MORTGAGE

STANDARD BANK

AUGUST 2007

DEFINITION

• BUSINESS MORTGAGE

• RESIDENTIAL PROPERTIES WHICH CAN BE EASILY CONVERTED BACK TO

A RESIDENTIAL HOME ONCE A BUSINESS IS NO LONGER REQUIRED

CRITERIA

• MINIMUM LOAN R100000• MAXIMUM LOAN R10M• SECTIONAL TITLE OFFICES R1,5M MAXIMUM BOND• LTV LESS THAN 66%=20YEAR TERM• LTV MORE THAN 66%=15 YEAR TERM• HOC INSURANCE IS COMPULSORY ON ALL LOANS• CONCESSION RATES MAY APPLY• BUSINESS RIGHTS TO BE OBTAINED• MAXIMUM LTV 80%

COSTS

• THE FOLLOWING COSTS ARE APPLICIABLE ON ALL LOANS.

• BOND COSTS

• TRANSFER FEES

• INITIATION FEES

• RGISTRATION FEES

• SECURITY ASSESSMENT FEES

CAPITAL RISK RATING

• CAPITAL RISK WILL APPLY AT A CHARGE OF 1,5% FOR THE ENTIRE LIFE OF THE BOND.

EXCLUSIONS

• BUILDING LOANS

• VACANT LAND

• ASSISTED LOANS

• JUMPSTART

• AGRICULTURIAL LOANS

• NON-RESIDENTIAL PROPERTIES FOR EXAMPLE FACTORIES AND RETAIL OUTLETS

DOCUMENTS REQUIRED

• HOME LOAN APPICATION

• INCOME & EXPENDITURE FORM

• CURRENT TITLE DEED OR CERTIFED COPY

• CURRENT LOCAL AUTHORITY ZONING CERTIFICATE

• CASH FLOW ANALYSIS

CONTACT PERSON

• PLEASE NOTE IF OVER R10M THIS LOAN WILL FALL UNDER OUR PROPERTY FINANCE CONTACT NUMBER 011770-8000 ASK FOR PROPERTY FINANCE DEPT

• PRODUCT OWNER

• Nolene 011631-1167