Standard Bank Reduced My Approved Home Loan After I Re**** on Their Funding

I am extremely disappointed with the way Standard Bank Home loan head office has handled my home loan application and the serious financial and emotional impact this has had on me and my children.

I initially app**** for finance to purchase a property through an estate agency. Standard Bank granted me a home loan of R892,000, and I have a signed copy of the relevant documentation. I understood that this amount would cover the purchase price as well as the applicable bond and transfer costs.

Before I fully understood that these costs were included in the approved amount, I obtained a separate loan from my current bank. I had not used those funds and intended to cancel that loan.

The method of purchasing the property later changed when we discovered that the property was going to be sold at auction. As a single mother trying to secure a stable home for my children, I had to make an urgent decision. I attended the auction with my estate agent and successfully secured the property for a lower purchase price.

During this process, I was informed that Standard Bank had reduced the approved home loan amount from R892,000 to R850,000 because the initial calculation included a first-time homebuyer benefit, and I had previously owned a property approximately 13 years ago. Although the amount was reduced, the understanding between my agent and me was that the R850,000 approval would still provide sufficient funding and leave a surplus to assist with costs arising from the auction purchase.

The attorneys appointed after the auction contacted me, and I completed and signed all the documentation requested. I also arranged the required insurance and opened a Standard Bank account as part of the process. Based on these steps and the communicated approval of R850,000, I believed that my finance was in order.

I have now been informed by the bond attorneys that Standard Bank will only finance the reduced auction purchase amount and will no longer make the full R850,000 available. This has shocked not only me, but also the attorneys and the estate agency involved in the transaction.

The property owner is reportedly unavailable, which has created further complications and possible additional costs. I understand that I am responsible for the obligations arising from the auction purchase. However, I entered this transaction believing that I had an approved amount of R850,000 and that the appointed attorneys could manage the necessary payments and costs using the approved finance.

I asked Standard Bank to consider granting me additional finance, but this request was also declined. I earn quarterly commission, I am due for a salary increase, and my commission structure has changed. I believe my complete and updated financial position should be considered fairly rather than relying only on assumptions about variable commission income.

I am now facing possible losses of almost R100,000, uncer*****y regarding accommodation, and the possibility that my children and I may be left without a home. My current landlord has already granted me an additional month because I explained that I had purchased a property.

I am a Black South African single mother who has worked hard to provide a secure home for her children. I am deeply concerned about whether my application and personal circumstances have been assessed fairly and consistently. I am not asking Standard Bank to disregard its lending requirements or banking regulations. I am asking the bank to provide a transparent explanation of why the finance changed after the approval had been communicated and after I had re**** on it when proceeding with the auction purchase. Resolution requested I urgently request that Standard Bank: Conduct a senior review of my complete home loan application and supporting documents. Honour the approved amount of R850,000, subject to the written terms of the approval and applicable lending requirements. Alternatively, provide a practical funding solution that allows the approved surplus to cover the legitimate bond, transfer, auction, attorney, or related property costs. Give me a detailed written explanation of why the original approval of R850,000 was reduced to the lowered amount as per auction, and why the R850,000 amount is now apparently no longer available. Explain whether the R850,000 was a final approval, an approval in principle, or conditional finance, and identify every condition that Standard Bank believes was not met. Assign a senior consultant who can work directly with me, the bond attorneys, and the estate agency to find an urgent solution. I re**** on Standard Bank’s written communication and completed every step requested of me. It is unacceptable for me simply to be told that the bank cannot assist without a detailed explanation and a genuine effort to resolve the situation. I trusted Standard Bank with one of the most important decisions of my life. I am asking the bank to treat this matter with the urgency, fairness, and compassion it deserves, and to help me secure the home I purchased for my children.