Can BBS consolidate my loans?

BBS’ mandate is property finance. Anything that falls outside the portfolio of property investment cannot be financed. The onus is on the customer to prove that their loans (personal) were taken for the acquisition or development of property, and only then can BBS consider consolidating such loans.

I have a house that does not have a bond against it. Can I get a loan against it?

Definitely. One can get a loan against the value of their house. Once the loan is approved and a bond is registered, a cheque will be made directly to the customer to make other property investments.

Can I insure the loan so the house does not get repossessed if I can’t pay?

Yes. The Mortgage Protection Cover will insure the loan in case of disability or death. Alternatively one can effect a Life Policy and cede it to BBS, such that in the event of death, the proceeds of the Policy will go towards clearing the loan, and what remains is paid out to the chosen beneficiaries. Unfortunately, there is no retrenchment insurance in the market at the moment to cover job loses.

If my house is repossessed and sold, do I get anything from the proceeds?

Yes. It should be noted however that this will only apply in instances where the sale price is more than the outstanding loan amount. Where property is repossessed, it is handed over to the executing attorneys and a legal sale process is initiated. The house will be sold at the prevailing market rate and the proceeds handed over to the Society for servicing of the outstanding loan amount. The remainder of the proceeds from the sale price is paid out to the individual under execution.

Can I then pay for the materials and BBS pays for the labour and vice-versa?

No. As mentioned above, BBS only pays out after completion of each stage. Should one wish to make a financial contribution towards the project, it is advisable to commit those funds by either depositing them in your mortgage account, or by utilizing them in the project until they are exhausted. The rest of the project requirements will then be met by the portion from the loan.

When building, does BBS give me the funds so I buy materials myself?

No. The disbursement of funds for a building loan is done at the end of each stage upon presantation of the Inspection Certificate. It is expected that the appointed contractors will bring the required building material, and will therefore submit a claim after satisfactory completion of the stage. The payment will be made out to the contractors.

Can I choose my own attorneys to take care of the conveyance process?

Yes. The choice of attorneys for the conveyancing process lies with the customer. In cases where the customer is not familiar with any attorneys, our staff can advise with the choice from our database.

Can I pay more/less so that the loan period is reduced/extended?

One is at liberty to make payments over and above the prescribed installment in order to shorten the duration of the loan. However, BBS will not permit the extension of the stated period or paying less than the prescribed installment, as this will only result in accumulation of arrears.

I want to build a house for my mother on her property. Can BBS help?

BBS will not extend finance to an individual for developments on a property whose title is held by a third party. It is only possible if the third party has agreed to sell/ effect transfer in favour of the loan applicant.

I want to buy an empty plot and build a house. Can BBS help me?

Yes. BBS offers financial assistance for purchase of land and construction of buildings, provided the property is transferable. This will mostly be possible in Freehold land (privately owned land). In cases where the plot sought is in a Leasehold (state owned land), there has to be a habitable structure on the plot to render it transferable. This will be classified as a building loan in which case one will have to fully satisfy the required documents before their loan can be processed.

Why does it take longer for cheques to clear when deposited with BBS as compared to other banks?

BBS is currently not in the clearing system and as such relies on its bankers for clearing cheques. This has therefore resulted in the Society extending the number of days during which a cheque may be processed to make provision for unpaid/bounced cheques.

What are the procedures to follow when transferring money from foreign based accounts to BBS accounts?

Anyone who wishes to remit funds to Botswana Building Society through financial institutions outside borders of Republic of Botswana must note that their bankers must have a link with one of the local banks through which they offer bank clearing services. The available facilities include among others, Telegraphic Transfers, Ufique messages just to mention a few. The local bank would then upon receipt of the instruction, forward the funds to Botswana Building Society either by cheque in favour of the Society with copy of instructions attached or credit BBS account in their books. There is no direct link with BBS since such transfers involves exchange of foreign currency to pula value.

When will you open branches in other areas or Botswana?

The opening of branches is influenced by many factors such as the population in a given geographical area, business opportunities that can be explored and whether the branch can sustain itself. BBS however continues to investigate possible areas which it may set up branches in to contribute to the improvement of its service delivery and service quality.

When will you introduce VISA electron cards?

As mentioned above, the Building Societies Act restricts the Society from offering an array of products. Consideration to explore other product offerings will be explored once the Society becomes a bank.

When will you introduce personal loans?

The Society trades under the Building Societies Act which currently restricts it from offering personal loans to its customers. However, consideration to offer unsecured loans will only be explored once amendments have been made to the Building Societies Act or on the Rules of the Society and when the Society demutualizes to become a bank.

Do you offer personal loans?

The Society does not offer unsecured personal loans because of statutory limitations. However, there is a short-term loan which an individual can take as long as they have Paid-up shares, Subscription shares or a Fixed Deposit account. Individuals can borrow up to 75% of their investment which also acts as the loan security. A short-term loan is not a withdrawal of shares. The shares will still remain yours and are committed to their long term income earning potential.

What is a building Society?

A building Society is an organization owned by its members (rather than external shareholders) which pays interest on deposits and lends money to enable members to buy their own homes. Building Societies provide an alternative to banks and other credit providers. They offer a different kind of banking based on cooperation, mutual benefit and customer focus.