Lead Promotion – Trade Period 4: Absa Home Loans offering

1. Lead Promotion – Trade Period 4:Absa Home Loans offering Sales Toolkit

2. Lead Promotion Positioning Absa Home Loans will be launching a positioning advertising campaign to position Absa Home Loans as the “enabler of customer dreams”

3. Home Loans Criteria Market Anyone who : • Earns a single or joint income of more than R1500 per month • Is formally or informally employed • Is above 21 years of age and or • Is in possession of a title deed registered in their name or who are in the process of purchasing a property Potential customers may already own a home (selling and or buying again) or may be in the market to purchase a home as first time or secondary buyers This sales promotion includes all new home loans, further advances and building loans

4. Absa Home Loans Offering 1 MyHome

5. MyHome Product Offering Overview Market • Customers with a monthly gross income of R1 500 to R7 500 per month (joint or single) • Note: Proof of earnings of an uninterrupted monthly income for a minimum of 12 months is required Features • 110% loans including the transfer fees, bank fees, registration costs, etc • Up to 50% discount on bond registration costs at selected panel of attorneys • Option of a fixed interest rate for 5 years • Assistance provided to establish a financial track record with a Target Save account, should the customer not have an existing record. Customers interested in this benefit will need to apply at any Absa branch • Borrower Education training for MyHome customers at no cost • Furniture and Appliance discount of at least 5% over and above any price cuts already on offer at JD Group Stores when taking up a furniture and appliance loan

6. MyHome Life Policy Notes • Life cover is a condition of the MyHome product offer for single and joint applications • The MyHome Life Policy offers life cover which includes permanent and temporary disability. AHL will ensure that the features and benefits of the policy is shared with customers on confirmation that the Absa loan terms and conditions have been accepted by the source • Cession of an existing policy to the MyHome Life loan will be considered if it complies with the requirements

7. Absa Home Loans Offering 2 3 Month Payment Holiday Customers can choose to take a “payment holiday” for up to three months!

8. 3 Month Payment Holiday Overview Market • Existing Customers: With an outstanding balance or new loan to value not exceeding 100% of the loan to value • New Customers: All loans granted with loan to value of 100% or less Features • The Three Month Payment Holiday allows customers to skip from between 1 to 3 months consecutive repayments • The additional funds will enable them to use the funds for an emergency, furnish their new home or use it for a holiday over the festive period. Example : Registration of a bond usually takes between 2 -3 months. If a client applies for a home loan and takes up the payment holiday anytime from 1 August to 14 Oct, they will have a repayment holiday over the festive period which is typically when customers are in need of additional funds Note:New Customers: the payment holiday can be made effective on the first repayment due after registrationExisting customers: Must allow 15 days prior to the due date of the next payment

9. 3 Month Payment Holiday Conditions Conditions • No arrears in the last six months or since registration (if registration period is less than six months) • The option can be selected over 1, 2 or 3 consecutive months (max 3 months) • The deferred period must expire by no later than 31st May 2007 • Access to Flexi Reserve will be frozen whilst the Payment Holiday is being utilised • Customers can only apply for the payment holiday once • MyHome customers with CRIS or collateral security are excluded from this offer

10. 3 Month Payment Holiday Process Process • External Sources – New and Further Advance Customers – Payment Holiday option selected • Complete the Home loan application form • Kindly indicate by clearly stating ‘Payment Holiday option’ on the faxed coversheet with your supporting documents • Submit application form with the required supporting documents as per usual

11. Notes • To ensure that the Code of Banking Practice is adhered to, the customer must be informed of the following: • The customer will still be liable for the repayments skipped – after the last deferred payment month the repayment will be re-calculated on the new balance over the loan term • Interest will continue to be calculated on the daily outstanding balance, from transaction to transaction and capitalised monthly • The repayment term of the bond will be extended by the number of months selected to defer repayment • The customer may choose not to extend the term of the loan, if so • Delete clause on application form that acknowledges extension of term and get the customer’s signature • This clause will also have to be manually added on the coversheet if client does not wish to extend. • Note that this will result in an increase of monthly repayments • The repayment will increase to a certain degree once the payment holiday is complete • The Customers’ FlexiReserve option will not be available whilst on holiday payment, as there will be a decreased amount available. It is advisable, therefore, to advise the client to use their Flexi Reserve prior to application • The customer needs to make arrangements to postpone/suspend payments such as stop orders, Cheque or transfers • The customer needs to reinstate repayment arrangements once the holiday period expired (if the customer is not paying via a debit order) • Customers paying their Absa Home Loan repayment via a debit order, Absa will suspend/reinstate the payment instructions

12. Individual accounts Joint accounts Staff accounts Group Scheme customers with no collateral security MyHome customers without CRIS (or other collateral security) Further advances Ordinary loans Vacant land Residential property Accounts with/without FlexiReserve First Time Home Loans (balance reduced to 100% LTV or less) 110% offer, where reduced to 100% LTV or less Companies Close Corporations Trusts Any home loan with collateral (including CRIS) Bonds under cancellation Home Loan accounts in arrears (including legal accounts) Non residential property Platinum One (Private One) Salary deductions Employee subsidy Inclusions and Exclusions for the 3 Month Payment Holiday Products Excluded Products Included

13. Absa Home Loans Offering 3 Fixed Rate at Prime Fixed rates are usually above prime, Absa Home Loans offer to fix the rate at prime is a differentiator !

14. Fixed Rate at Prime - Overview Market • Includes all NEW ordinary home loans and building loans (once they have been paid out) Features • Customers have the option to choose a variable or a fixed rate option • Variable rate is linked to the prime mortgage lending rate and usually move with changes to the prime lending rate • Fixed rate is an agreement whereby you agree to maintain a certain interest rate for a certain period, regardless of movement in the prime rateDuring this Trading Period 4, Absa will be offering a fixed rate at prime for 12 months - to new customers only. • The rate will be fixed at the prime rate applicable at the time of signature NOTE: This special offer will apply regardless of the Loan-to-value (LTV) percentage

15. Summary on Home Loan Offers • The MyHome home loan enables people who earn between R1500 and R7500 to qualify for a Home Loan or a Further Advance. • Convenient breather over the festive season, thanks to the three-month payment holiday on home loan repayments. • An opportunity to fix home loan rate at the current prime rate – ensuring no increases in bond repayments for 12 months.