ComBank notches up another first with special Home Loan scheme for first timers

Sri Lankans aspiring to build or buy their first home with bank loans will receive a significant financial concession from the Commercial Bank of Ceylon with the introduction of a new Home Loans product that offers a free or discounted Decreasing Term Assurance Policy (DTAP) covering the loan.

Another first in Sri Lanka, Commercial Bank’s ‘First Time Home Buyers & Builders’ scheme is designed to eliminate or reduce the burden of the cost of the loan protection insurance at a time when construction costs as well as interest rates are rising, the Bank said.

While the Bank will contribute 100% of the premiums of the DTAP in respect of Home Loans granted to borrowers below the age of 40, borrowers above 40 and up to 50 will enjoy a concession of 50% on their DTAP premiums. The discount on DTAP premiums would be 25% for borrowers in the above 50 and below 60 category.

By providing the DTAP free or at concessionary rates, the Bank said it is also contributing to ensure that customers and their dependants are protected against the risk of the applicant’s untimely death or total and permanent disability. The significance of the availability of a DTAP is that in the event of such an occurrence during the term of the loan, the insurance company will settle the loan in full.

The consequences of not having insurance protection against a home loan could be serious and, in some instances, may also lead to the applicants and their families facing difficulties during unforeseen events, the Bank said.

Besides the newly-launched product with free or concessionary DTAP, Commercial Bank pioneered ‘’Flexible Home Loans’’ options, which include Residual Home Loans and Step-up Home Loans.