1. The information contained in this document is confidential, for internal use only and may not be distributed outside the Standard Bank Group. June 2007 NCA Income and Expenses Calculations

2. In Summary … Please consider the following questions when assisting the customer determine his/her gross monthly income and expenses:

3. Income and Expenses Does the customer currently have any Home Loans? Yes No

4. Income and Expenses Does the new Home Loan replace any expense item of the customer’s current expenses? Yes No

5. Income and Expenses Yes - e.g. the customer currently pays rent but will no longer pay this when taking out a home loan. The rental amount therefore is not included as an expense item. Next

6. Income and Expenses No - e.g. the customer currently pays rent but will continue to pay this when taking out a home loan. The rental amount therefore is included as an expense item. Next

7. Income and Expenses Does the new Home Loan replace the customer’s current Home Loan expenses? In other words is he selling his current house? Yes No

8. Income and Expenses Yes - e.g. the customer currently pays a Home Loan amount but will no longer pay this when taking out a new home loan as they will be selling the current house. The loan amount therefore is not included as an expense item. Next

9. Income and Expenses No – For example the customer currently pays a Home Loan amount but will continue to pay this when taking out a new home loan. The loan is a second Home Loan and the amount is therefore included as an expense item. The customer is taking out a further advance on an existing Home Loan; therefore the original installment on the first loan must be taken into consideration as an expense item.

10. Income and Expenses Are all the income sources included? For example does the customer receive rental income or any other form of income?

11. Income and Expenses Has the customer correctly calculated all expenses? Yes – Assist customer with the application process ensuring surplus available is sufficient for the application. No – Assist the customer in completing the income and expenses using the Income and Expenditure Guideline Document. Ensure sufficient surplus is available and submit the application.

12. Income and Expenses Is there sufficient surplus to cover the repayment? E.g. Gross monthly expenses= R 9,000.00 Gross monthly income = R10,000.00 Surplus = R 1,000.00 The surplus amount in this example is insufficient for most Home Loan amounts and the customer will most likely be declined. It is up to the staff member/originator assisting the customer to be proactive and discuss the logical aspect of this loan application and to seek alternative options.

13. Income and Expenses For home loans applications, when is additional information required to process requests from the customer on an existing loan account? It is required when: –Converting to fixed rate (New & Future use) –Reducing of the loan term –Increasing the loan amount –Increasing basic instalment –NB: NOT for AccessBond –NB: NOT for Building Loans

14. Income and Expenses Key Points to Remember Please ensure that you have captured the gross income and not the net income Please ensure that you do no double count any loans that are being replaced by this loan Ensure that all income is captured for all applicants therefore in the case of joint applications, please ensure that all income is captured.