Dear Mr Masina

Congratulations on the committee’s determination to invite the banks for appearance before parliament, as per the mybroadband article: https://mybroadband.co.za/news/banking/576805-south-african-banks-in-hot-water.html

My question is about structure of the homeloan/bond finance 20-30yrs vs vehicle finance agreement 54-72 months.

Keeping to agreed loan schedule, a bank customer can payoff a R1million vehicle finance in 5years, yet will take minimum 20yrs to settle a home loan of the same amount (R1million). Understanding that these are two different asset categories, the home loan interest charges on loan appears to be unreasonably high.

To me this looks like a scam, South African public are effectively enslaved by the banks i.e 20yrs to settle R1million home loan, we are all indirectly working for one sector - banks. In my mind South African banks are part of the problem keeping the public poor i.e customers spend their entire lives working to pay off one asset.

Shouldnt the home loan interest structure be reviewed (more affordable) such that customers can payoff their homes in shorter period (max 10yrs) and move on to use the free monies to focus on other things in so doing improve their lives - example (1) use the paid off property as security to borrow funding for a business (2) use free cash (previous bond instalment) to save and invest in stock market (3) use free cash to buy more property for real estate business..?

Many thanks
Lebogang Motshabi