Origination Overview

Presentation

June 2010

oobarometer Analysis:

IndicatorMay2010

May2009

Change yr on yr (May 10 vs May 09)

Apr2010

Change month on month (May 10 to Apr 10)

Avg purchase price 872,083 777,277 12.2% 881,044 -1.0%

Avg purchase priceof  first time buyer

604,857 554,303 9.1% 626,719 -3.5%

Avg approved bond size 716,862 608,337 17.8% 689,613 4.0%

Avg deposit (as % of purchase price)

17.8%(R155,221)

21.7%(R168,940)

-18.0%21.7%

(R191,431)-18.0%

Avg age of applicant 37 38 1 Year Younger 37 No Change

Avg decline ratio 52.9% 49.5% 3.4% 54.1% -1.2%

Ratio of applications declined by one lender but approved by

another16.2% 22.6% -6.4% 21.1% -4.9%

Origination Overview:

Application volumes for May showed a year-on-year increase of

35%.

Granted bond conversion ratios are still lower year-on-year but this

should trend stronger as banks continue to relax their lending

criteria and economic conditions improve.

Bank decline ratios are still marginally higher year-on-year but

have shown a month-on-month improvement.

Ratio of applications declined by one bank, granted by another is

trending at a lower ratio predominantly due to the stricter credit

criteria banks are imposing on 100% bonds.

Origination Overview: (Continued)

• Banks are continuing to relax their credit policies and deposit requirements and are now once again offering 100% bonds.

• Number of buyers purchasing property with a 100% bond requirement has more than doubled since September 09.

• Banks are adopting a cautious approach to approving 100% bonds by applying stricter credit criteria. Only 31% of 100% bond applications are approved and 49% of these approvals are subject to deposits.

• Applications with deposits are securing higher approval rates than 100% bond applications.

• 91% of ooba applications are granted within 5 days of submission.

Bank Loan to Value Criteria:

*Maximum LTV % based on the Lower of purchase price or bank valuation of property

VACANT LAND All Loan Amounts = maximum 60%

STD Current Account HoldersAll loan amounts = maximum 75%Non STD Current Account HoldersLoan amount ≤ R 1m = maximum 75%Loan amount > R 1m = maximum 65%

All loan amounts = maximum 70%Nedbank PropertiesIn Possession = maximum 100%

All Purchase prices = maximum 60% N/A

RESIDENTIAL PROPERTY (Including Building Loans)

A. Completed Property:ABSA Customers who are employed:Loan Amounts ≤ R 1.5m = max 100%Loan Amounts > R 1.5m –R2.7m= max 90%Loan Amounts > R2.7m = max 85%(Except for Legal Entities who will only qualify for a maximum ltv of 85%)ABSA Distressed Properties &ABSA PIP’s = max 100%ABSA Customers who are self-employed: Loan Amounts ≤ R2.7m = maximum 85%Loan Amounts > R2,7m = maximum 75% Non- ABSA Customers :All Loan Amounts = maximum 70%B. Building Loans:ABSA Customers:Loan Amounts ≤ R 2.7m = maximum 80%Loan Amounts > R 2.7m = maximum 70%Non-ABSA CustomersAll Loan Amounts = maximum 65%

STD Current Account Account Holders & Non STD Current Account Holders Loan Amount ≤R2.5m = maximum 90%Loan Amount > R2.5 m = maximum 80% SA Citizens Living and Working Abroad: All Loan Amounts = maximum 70%

Loan Amount ≤ R 3m = maximum 100%Loan Amount > R 3m = maximum 85%Non-Nedbank Customers who are self-employed:Loan Amount ≤R3m = maximum 90%Loan Amount >R3m = maximum 85%Nedbank Properties In Possession = maximum 100%Initiation fee permitted for inclusion in loan amount but only provided that total loan, including initiation fee, does not exceed maximum ltv cap of 100%.

A.Completed Property:Purchase price ≤ R2.0m = maximum 100%Purchase price > R2.0m = maximum 80%*(* Awaiting confirmation from FNB of revised ltv criteria) A.Building Loans:Purchase price ≤ R2.0m = maximum 90%Purchase price > R 2.0m = maximum 80%* (*Awaiting confirmation from FNB of revised ltv criteria)Same guidelines are applicable for FNB ONE ACCOUNT

ABSA Savings & Current Account HoldersPurchase price ≤ R 2.7m = maximum 85%Purchase price > R 2.7m = maximum 75%NON ABSA Savings & Current Account HoldersAll Purchase Prices = maximum 70%

FURTHER LOANS

A. Vacant Land = Maximum 60%B. Completed PropertyLoan Amounts ≤ R1.5m = maximum 90%Loan Amounts > R1.5M = maximum 85%C. Building LoansLoan Amounts ≤ R2.7m = maximum 80%Loan Amounts > R2.7m – maximum 70%

Same guide-lines for new loans would be applicable.

All loan amounts = maximum 80%Same guidelines are applicable for Further Building Loans

For Further advance or Re-Advance a cap of R 5m must be applied.

Bank Loan to Value Criteria:

APPROVED COLLATERAL SECURITY **

Z573 (Gov/Municipal Guarantee)ORABSA Approved Group Scheme ORABSA Fixed Deposit (100% value)OROther banks Fixed Deposit (90% value)ORLife Policies with surrender value (100% of free S/V – no premium debt)ORCovering bond over un-bonded residential property (80% of ABSA value of property)If collateral is provided by a 3rd party (i.e. other than the applicant), it will need to be supported by a limited suretyship from the 3rd party in favour of the applicant to the value of the security provided

Z573 (Gov/Municipal Guarantee)ORCovering bond over an un-bonded residential property (owner MUST be applicant)

Nedbank Fixed DepositORCovering bond over an un-bonded residential property.

No forms of collateral security have been approved.

ABSA Fixed Deposit (100% value) OROther banks Fixed Deposit (90% value) ORLife policies with surrender value(100% of free S/V – no premium debt) ORCovering bond over an unbonded residential property (current LTV caps will apply to the collateral property)If collateral is provided by a 3rd party (i.e. other than the applicant), it will need to be supported by a limited suretyship from the 3rd party in favour of the applicant to the value of the security provided

** If approved collateral security is ceded to the bank, reducing the risk to the relevant permissible level, a higher loan amount may be considered.

COST INCLUSIVE LOANS

Only offered on the ‘My Home’Product’ (affordable market)

Only available for First Time Homebuyers who apply directly to Standard Bank and on the Affordable Housing product

No cost inclusive product available No cost inclusive product available No cost inclusive product available

Affordable Lending Guide-Lines By Bank:

Bank Product Name: My Home Affordable Housing Smartbond

No specific product name

KZN Only - No specific product name

Maximum Income Qualifying Criteria:

Single / Joint Monthly Income:Maximum income of R15 142

Single / Joint Monthly Income:Maximum income of R15 498

Single Applicant:Maximum income of R15 000Joint Applicant’s:Combined income may not exceed R15 000

Single/Joint Monthly Income:Maximum income of R18 000 No maximum income limit

Maximum Installment to Income Ratio

All income brackets:Based on Affordability

All income brackets:Maximum 30%

All income brackets:Based on Affordability

Income up to R3500:Maximum 25%Income > R3501Maximum 30%

All income brackets:Maximum 30%

Maximum Loan to Value Ratio

80% - without Collateral Security100% - with Collateral Security110% - With CRIS Guarantee (Collateral Replacement Indenmity Scheme)

100% - Non First-Time Buyer104% - First Time Buyer 100%

90% - without Collateral Security100% - with Collateral Security

100% - Maximum Loan Amount of R1m 95% - >R1m – R1.5m80% - Loan Amount greater than R1.5m

Vacant Land No No No No YesMaximum Loan to Value – 60%

Maximum Loan Amount

Maximum in terms of affordability

Maximum in terms of affordability

Maximum in terms of affordability

R 400 000 – 100% RiskR420 000 – Costs Inclusive

Maximum in terms of affordability

Life Assurance Compulsory

Yes Yes Yes Yes Yes

Credit Market Conditions:

Banks appetite for lending is gradually recovering and increased competitiveness for homeloan business amongst banks is becoming evident.

Bank approval rates are still inhibited by consumers’ high debt to income ratio and impaired credit records.

Although average homeloan interest rate concessions are still lower year on year, there is evidence that banks are starting to compete on pricing.

Banks are recording a slower growth in the number of non-performing loans.

Property market is gearing itself for a gradual recovery during 2010, already evidenced in the consistent house price growth recorded in the house price indices released by the banks and ooba for May 2010.

Credit Market Conditions:

May 2010

Application Loan to Value Analysis

100%LTV 43%

90% - 99.9% LTV

22%

80% - 89.9% LTV

10%

70% - 79.90% LTV

8%

60% - 69.9% LTV

5%

<60% LTV 12%

100% LTV 18%

90% - 99.9% LTV 40%

80% - 89.9% LTV 18%

70% - 79.90% LTV

9%

60% - 69.9% LTV 6%

<60% LTV 9%

Aug 2009

Bonds Approval Analysis: 100% LTV• Only 31% of 100% bonds submitted are approved.

100% LTV 49%

90% - 99.9% LTV

36%

<90% LTV 15%

Approval Amount Analysis

Bond Approval Analysis: 80% - <90% LTV

• 50% of 80% - <90% LTV bonds submitted are approved.

Approval Amount Analysis

80% - 89.9% LTV 89%

70% - 79.9% LTV 6%

<70% LTV 5%

Absa Overview:

Currently declining 45% of applications submitted

14% of applications declined by Absa are granted by

another bank/s

92% of loans submitted to Absa are granted within 5 days

May’s results reflect that ABSA’s pricing has improved

marginally

Nedbank Overview:

Currently declining 57% of applications submitted

19% of applications declined by Nedbank are granted by

another bank/s

95% of loans submitted to Nedbank are granted within 5

days

May’s results indicate that Nedbank’s pricing has improved

marginally

FNB Overview:

Currently declining 57% of applications submitted

15% of applications declined by FNB are granted by another

bank/s

94% of loans submitted to FNB are granted within 5 days

May’s results reflect that FNB have continued to offer the

most competitive rates in the market

General:

Bank’s are focusing on:

• Bad Debt Limitation• Cost of Funding• Profitability • Quality of Applications• Reducing NTU’s• Processing Costs efficiencies• Fraud Prevention• Streamling Bond Conveyancing Panels