Offer to purchase question

[TPants]

Jibar rate isnt linked to prime at all. So if SA HL think they can up the rate to 10%, they can. That is one big factor clients dont understand, its not regulated at all.

Sorry that is complete rubbish, I suggest you actually research it before posting comments like that.

 

[zerocool2009]

Sorry that is complete rubbish, I suggest you actually research it before posting comments like that.

Ok! If you say so! I know a few clients (friends) who got letters of rate changes, and the reserve bank rate stayed the same. And then they switch homeloan providers.

Jibar vs Prime - i.e SA Home Loans vs Banks

Hi All I've recently signed an offer to purchase on a property so have started enquiring about financing. I came across an interesting concept whereby SA Home Loans uses Jibar as opposed to the Prime interest rate...

mybroadband.co.za

 

[Sinbad]

Ok! If you say so! I know a few clients (friends) who got letters of rate changes, and the reserve bank rate stayed the same. And then they switch homeloan providers.

Jibar vs Prime - i.e SA Home Loans vs Banks

Hi All I've recently signed an offer to purchase on a property so have started enquiring about financing. I came across an interesting concept whereby SA Home Loans uses Jibar as opposed to the Prime interest rate...

mybroadband.co.za

JIBAR is an interbank agreed rate. It's in the name. It's not related to repo at all, but it is a controlled, competitive rate. SAHL can't arbitrarily change the rate.

 

[zerocool2009]

JIBAR is an interbank agreed rate. It's in the name. It's not related to repo at all, but it is a controlled, competitive rate. SAHL can't arbitrarily change the rate.

A nice article explaining it

Capitec's new home loans aren't linked to the prime rate - here's what else you need to know | Business Insider

Unlike other home loans, the Capitec mortgage doesn’t track the repo rate.

www.businessinsider.co.za

Jibar can go up or down (without any movement from prime).

 

[Jehosefat]

A nice article explaining it

Capitec's new home loans aren't linked to the prime rate - here's what else you need to know | Business Insider

Unlike other home loans, the Capitec mortgage doesn’t track the repo rate.

www.businessinsider.co.za

Jibar can go up or down (without any movement from prime).

He never said that it couldn't. His point was that SA Homeloans cannot change JIBAR.

 

[TPants]

Ok! If you say so! I know a few clients (friends) who got letters of rate changes, and the reserve bank rate stayed the same. And then they switch homeloan providers.

Jibar vs Prime - i.e SA Home Loans vs Banks

Hi All I've recently signed an offer to purchase on a property so have started enquiring about financing. I came across an interesting concept whereby SA Home Loans uses Jibar as opposed to the Prime interest rate...

mybroadband.co.za

Not if I say so, it’s regulated by the Reserve Bank. It’s an interbank average rate with its own determinations as to how it is calculated. All rates can change but rather understand the methodology behind it as that is most likely how they are sourcing their funds to lend to customers.

 

[zerocool2009]

All I am saying is Jibar rate isnt linked to prime, and SA HL and up or down rates as they wish every 4 months (when they review it)

 

[I.am.Sam]

All I am saying is Jibar rate isnt linked to prime, and SA HL and up or down rates as they wish every 4 months (when they review it)

so they offer you a good rate for now and in few months they can change that rate ?

do they offer fixed rates ?

 

[I.am.Sam]

another quick question, we have a bond originator this time around

do i need to apply to banks or it will be a duplicate application ?

 

[prod]

another quick question, we have a bond originator this time around

do i need to apply to banks or it will be a duplicate application ?

I don't think you would want to do that - wouldn't the applications be linked to your I.D.? So it would likely just create confusion

 

[zerocool2009]

another quick question, we have a bond originator this time around

do i need to apply to banks or it will be a duplicate application ?

If you apply, and the MO, the active application would be the first one approved (on principle).

But dont waste the banks time! Getting an application to principle (its a few departments / hands handling it)!

I see this daily how clients run to the ombudsman to get ebucks, but they applied through a MO!

 

[Gtx Gaming]

Awesome absa comfirmed first payment end of october, approved the debi check on the fnb platform.

Rental agent said My rent for 2nd september till end of september need to be refunded by the devoloper who got it this month, il use the bucks to pay the rates and levies a few months in advance.

Accounts will take few months to be in my name but will by the accounts so long

 

[I.am.Sam]

If you apply, and the MO, the active application would be the first one approved (on principle).

But dont waste the banks time! Getting an application to principle (its a few departments / hands handling it)!

I see this daily how clients run to the ombudsman to get ebucks, but they applied through a MO!

that ebucks also its only half of the 1st bond payment

which is decent but not crazy

 

[zerocool2009]

that ebucks also its only half of the 1st bond payment

which is decent but not crazy

Hey, its free money! And get 50% off legal fees.

A win is win (my view)

 

[Jehosefat]

All I am saying is Jibar rate isnt linked to prime, and SA HL and up or down rates as they wish every 4 months (when they review it)

They don't "up or down it as they wish". JIBAR is an officially calculated and published set of rates (the most common one being the 3 month rate). JIBAR is updated daily as per the agreed methodology. Since the one that SA HL use is the 3 month rate, your rate will be 3-month JIBAR today + whatever your spread is. In 3 months time, they will reset your rate to the 3-month JIBAR rate on that day + your spread. It's exactly the same way your bank would update your rate when the repo/prime rate moves, the only difference being that your JIBAR rate is reset every 3-months regardless of whether it moves or not.

They can't change your rate whenever they want and they can't change it to whatever they want. Your spread is part of the contract and they cannot unilaterally change that. And they are contractually bound to use the 3-month JIBAR rate at each of your reset dates as the reference rate. Since SA HL is a price taker in the rates market, they cannot influence JIBAR either.

After your first 10 words, the rest of the quoted post is complete nonsense.

 

[zerocool2009]

They don't "up or down it as they wish". JIBAR is an officially calculated and published set of rates (the most common one being the 3 month rate). JIBAR is updated daily as per the agreed methodology. Since the one that SA HL use is the 3 month rate, your rate will be 3-month JIBAR today + whatever your spread is. In 3 months time, they will reset your rate to the 3-month JIBAR rate on that day + your spread. It's exactly the same way your bank would update your rate when the repo/prime rate moves, the only difference being that your JIBAR rate is reset every 3-months regardless of whether it moves or not.

They can't change your rate whenever they want and they can't change it to whatever they want. Your spread is part of the contract and they cannot unilaterally change that. And they are contractually bound to use the 3-month JIBAR rate at each of your reset dates as the reference rate. Since SA HL is a price taker in the rates market, they cannot influence JIBAR either.

After your first 10 words, the rest of the quoted post is complete nonsense.

As you wish ! Not having this debate. I seen SAHL clients not happy (and all that is stated, its in the contact).

 

[TPants]

As you wish ! Not having this debate. I seen SAHL clients not happy (and all that is stated, its in the contact).

Haven’t you stated before that you work for a competing bank? If you’re unwilling to debate a topic, you should refrain from making statements about that topic.

 

[zerocool2009]

Haven’t you stated before that you work for a competing bank? If you’re unwilling to debate a topic, you should refrain from making statements about that topic.

Never in my life !

I am debating nothing. All I am saying Jibar isn't linked towards prime, and SA HL can do as they please (go read hellopeter with some unhappy customers).

 

[I.am.Sam]

Hey, its free money! And get 50% off legal fees.

A win is win (my view)

how much is legal fees ?

 

[I.am.Sam]

and seeing that the sellers lawyers or the agents lawyers contacted me

does it matter if i change soon if FNB agrees ?