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marine1
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Nedbank and FNB hold off rate cut until Monday
- Thread starter marine1
- Start date
Are the banks obliged by law to drop their rates on the same day? If not, there is nothing we can do besides moving your business away from them.
buffalobill
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No, it's up to the individual banks. Generally (and I can say this from personal experience having been on the inside) they make a decision whether to try to be first or play a waiting game to see which of the banks move. In recent years, banks have mostly moved next day, but not always. There's nothing unusual about FNB and Nedbank's decision but, of course, they also score a few extra days of interest.
In the OLD days (+15 years), banks would adjust their rates the following month.
Sneeky
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In the OLD days, it was a manual process, hardly comparable.
Don't mess with peoples money, no matter how equitable they feel the situation is. The banks should be acting in the interests of their clients, not themselves.
As some banks do exactly that, I know where the little money I have belongs.
Don't mess with peoples money, no matter how equitable they feel the situation is. The banks should be acting in the interests of their clients, not themselves.
As some banks do exactly that, I know where the little money I have belongs.
Sneeky
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How is that significant, if interest rates increased by 50 basis points versus decreased by 100 basis points.
ToxicBunny
Oi! Leave me out of this...
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Well if thats the case, then Nedbank will no longer be getting my HomeLoan business in a few months....
If they can up it quickly, then they can drop it quickly.. and profiteering will not be tolerated.
If they can up it quickly, then they can drop it quickly.. and profiteering will not be tolerated.
semiautomatix
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I know, I was a bit pissed off when my colleague's repayments for his ABSA Home Loan were lowered significantly on 1 Jan (pro rata) with a further reduction on 1 Feb. I do suppose, however, this will equate to savings in the long run. I do hope Nedbank lowers the repayments on 1 March, though, I could really do with the savings now!
On topic: I have a car loan with WesBank and a home loan with Nedbank - looks like I get double screwed!
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supersunbird
Honorary Master
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My homeloan is on the JIBAR rate, they only held their meeting on 19 Jan. But it came down 0.8% (saving me R277pm). Next meeting is only on 20 April I think , hopefully that comes down 1% or more...
I'm gonna use the saving to pay of the car loan at 17%-fixed faster...
I'm gonna use the saving to pay of the car loan at 17%-fixed faster...
semiautomatix
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Would someone please explain the JIBAR rate, I have a vague understanding of the concept; however, I would like to know why (and possibly how) I would acquire a loan on the JIBAR rate?
Fact is this is not news, not when it comes to FNB anyway. If many people move their loans because of this FNB and Nedbank will change their practice. Make sure you let them know why you're changing banks.
A lot of people will not bother though. There are costs involved in moving a mortgage and in many cases the competing banks will not offer competitive loan rates.
A lot of people will not bother though. There are costs involved in moving a mortgage and in many cases the competing banks will not offer competitive loan rates.
Is that when they altered the payment or when they reduced the interest you are paying?
supersunbird
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http://www.answers.com/topic/johannesburg-interbank-agreed-rate-jibar
Basically its just a rate used between the banks, I don't know if its when they borrow between each other or what...
MORE:
http://www.privateproperty.co.za/news/newsarticle.asp?articleid=24
semiautomatix
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Yeah, I've read those but they don't adequately explain it. Besides, I would also like to hear from people (including you) how you feel about using the rate, whether you feel it is beneficial or not, would you recommend the change. Thanks!
supersunbird
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Its just a different and get calculated at different time (aka every 3 months in my case). And doesn't get announced media wide.
Here is what it says on my statement so far since the purchase regarding the rates:
Date Rate Instalment
18/07/2008 14.000% Rxxxx.xx
20/10/2008 13.900% Rxxxx.xx
19/01/2009 13.100% Rxxxx.xx
20/04/2009 Next Rate Change
How your SA Home Loans rate is calculated:
JIBAR 91 day Discount Rate 11.300%
Converted to monthly yield and rounded up 11.400%
Plus SA Home Loans margin 1.700%
SA Home Loans mortgage rate 13.100%
You'd have to see how much the bond transfer costs would be, probably cheaper to just those pump those costs into the homeloan as it is...
Here is what it says on my statement so far since the purchase regarding the rates:
Date Rate Instalment
18/07/2008 14.000% Rxxxx.xx
20/10/2008 13.900% Rxxxx.xx
19/01/2009 13.100% Rxxxx.xx
20/04/2009 Next Rate Change
How your SA Home Loans rate is calculated:
JIBAR 91 day Discount Rate 11.300%
Converted to monthly yield and rounded up 11.400%
Plus SA Home Loans margin 1.700%
SA Home Loans mortgage rate 13.100%
You'd have to see how much the bond transfer costs would be, probably cheaper to just those pump those costs into the homeloan as it is...
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