Offer to purchase question

[zerocool2009]

How can they do as they please? They apply a predetermined spread to a market determined interest rate at set intervals. Where is the room for their own discretion in that?

SA HL is very quick to give awesome rates. But to get out of the contract is another thing (just added fees again). Read the super fine print (my advice). I helped a few guys switching bonds from providers (exactly for the reason, a carrot infront of the nose, no other bank can beat that, and then bingo ... it goes up every 4 months)

Personally I would rather want to know for a fact my bond is in par with what the repo rates does vs to guess.

I am not saying SA HL bad either. If you don't even know what JIBAR is, don't apply with someone offering that.

Ask anyone applying for a bond (why are they not under the top bond providers in SA) ? There might be clients happy with them. All good and fair. Everyone to their own (but don't cry when the rates go up and the repo down)

Lets close this subject (as in read up with who do you apply).

 

[Sinbad]

I

SA HL is very quick to give awesome rates. But to get out of the contract is another thing (just added fees again). Read the super fine print (my advice). I helped a few guys switching bonds from providers (exactly for the reason, a carrot infront of the nose, no other bank can beat that, and then bingo ... it goes up every 4 months)

Personally I would rather want to know for a fact my bond is in par with what the repo rates does vs to guess.

I am not saying SA HL bad either. If you don't even know what JIBAR is, don't apply with someone offering that.

Ask anyone applying for a bond (why are they not under the top bond providers in SA) ? There might be clients happy with them. All good and fair. Everyone to their own (but don't cry when the rates go up and the repo down)

Lets close this subject (as in read up with who do you apply).

I feel that ethically, as a connected person to one of the big four banks, you should put in disclaimers stating this when providing advice or opinions on other lenders.

 

[zerocool2009]

I

I feel that ethically, as a connected person to one of the big four banks, you should put in disclaimers stating this when providing advice or opinions on other lenders.

Its nothing related to being connected. If someone wants help, I will gladly help. I helped ALOT of guys on here.

Lets learn from past mistakes (as we cant rewind time), thats my motto.

 

[Jehosefat]

SA HL is very quick to give awesome rates. But to get out of the contract is another thing (just added fees again). Read the super fine print (my advice). I helped a few guys switching bonds from providers (exactly for the reason, a carrot infront of the nose, no other bank can beat that, and then bingo ... it goes up every 4 months)

Personally I would rather want to know for a fact my bond is in par with what the repo rates does vs to guess.

I am not saying SA HL bad either. If you don't even know what JIBAR is, don't apply with someone offering that.

Ask anyone applying for a bond (why are they not under the top bond providers in SA) ? There might be clients happy with them. All good and fair. Everyone to their own (but don't cry when the rates go up and the repo down)

Lets close this subject (as in read up with who do you apply).

So in summary, people agree to the terms of the bond, then have a b***h when the lender applies the exact terms that they agreed to and suddenly the lender is at fault for being "unfair".

Also why does it matter if your bond is relative to prime? Unless you have a large portion of your income from interest related to prime it really shouldn't matter which floating rate your bond references.

 

[Jehosefat]

Its nothing related to being connected. If someone wants help, I will gladly help. I helped ALOT of guys on here.

Lets learn from past mistakes (as we cant rewind time), thats my motto.

Well you'll gladly spout your opinions as though they are facts, some of which have been helpful but a bunch have just been plain wrong or grossly misleading.

And to Sinbad's point, I agree with him that if you are connected to a bank and you start slagging off another lender (in this case SA HL) you should at the very least mention that you work for another bank. You should probably also mention that you have no idea how JIBAR works before going on about how its bad.

 

[zerocool2009]

Well you'll gladly spout your opinions as though they are facts, some of which have been helpful but a bunch have just been plain wrong or grossly misleading.

And to Sinbad's point, I agree with him that if you are connected to a bank and you start slagging off another lender (in this case SA HL) you should at the very least mention that you work for another bank. You should probably also mention that you have no idea how JIBAR works before going on about how its bad.

LOL, please go with SA HL please (they are the best) ! See you switch soon !

 

[Jehosefat]

LOL, please go with SA HL please (they are the best) ! See you switch soon !

I'm not saying that they are the best... I'm saying that your criticism of them is based on bulls**t "facts".

Pointing out that they use JIBAR as a reference rate and that it can fluctuate without Prime moving is one thing. That is a fact. Your point about them doing whatever they want and raising your rates whenever they feel like it is complete bulls**t. See the difference?

 

[TheBadMadMan]

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.

I agree with this post quoted.
I am amazed at some people's lack of understanding of the JIBAR.

JIBAR 3 months is basically linked to the repo rate for the most part (linked not the same as being equal), but what it does do is smooth out the rapid fluctuations which normally come with the repo rate. Every 3 months it corrects itself. So in theory you can be at a lower rate when repo is up but you can also be at a higher rate when repo is down. But long term you should average out to the same relative standing vs the repo rate +-.

https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates (click on Jibar 3 months)

 

[zerocool2009]

I agree with this post quoted.
I am amazed at some people's lack of understanding of the JIBAR.

JIBAR 3 months is basically linked to the repo rate for the most part (linked not the same as being equal), but what it does do is smooth out the rapid fluctuations which normally come with the repo rate. Every 3 months it corrects itself. So in theory you can be at a lower rate when repo is up but you can also be at a higher rate when repo is down. But long term you should average out to the same relative standing vs the repo rate +-.

https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates (click on Jibar 3 months)

I quoted this yesterday in the articles too. All I am saying, the repo can drop and SA HL can increase rates.

 

[TheBadMadMan]

I quoted this yesterday in the articles too. All I am saying, the repo can drop and SA HL can increase rates.

No, SA HL rate is linked to JIBAR. So if jibar goes up by 0.2%, your SA HL rate goes up by 0.2%.

SA HL cannot decide to increase your rate by 0.4% if JIBAR only did 0.2%.

 

[Speedster]

I quoted this yesterday in the articles too. All I am saying, the repo can drop and SA HL can increase rates.

And repo can increase while JIBAR drops so SA HL will decrease rates

 

[zerocool2009]

No, SA HL rate is linked to JIBAR. So if jibar goes up by 0.2%, your SA HL rate goes up by 0.2%.

SA HL cannot decide to increase your rate by 0.4% if JIBAR only did 0.2%.

That wasnt the point made / discussed at all.

I said Jibar rate is used by SA HL. If the repo drops, SA HL can "up" interest rates on their side, EVEN if the repo rate drops.

 

[Speedster]

That wasnt the point made / discussed at all.

I said Jibar rate is used by SA HL. If the repo drops, SA HL can "up" interest rates on their side, EVEN if the repo rate drops.

You said SA HL does whatever they please, which is utter bull.

 

[TheBadMadMan]

That wasnt the point made / discussed at all.

I said Jibar rate is used by SA HL. If the repo drops, SA HL can "up" interest rates on their side, EVEN if the repo rate drops.

Like i said JIBAR smooths out the rapid fluctuations of the repo rate, both the upside and the downside. So when repo goes up, SA HL will still be charging you the lower rate until JIBAR is recalculated.

 

[zerocool2009]

And repo can increase while JIBAR drops so SA HL will decrease rates

True. As JIBAR indicates what the reserve bank "might" do. But nothing is guaranteed.

So the question is, do you want to guess what your bond holder will do when the repo drops or increases ? (or rather have it linked towards something set in stone) ?

 

[Speedster]

True. As JIBAR indicates what the reserve bank "might" do. But nothing is guaranteed.

So the question is, do you want to guess what your bond holder will do when the repo drops or increases ? (or rather have it linked towards something set in stone) ?

JIBAR is no more or less set in stone than repo. The point is SA HL uses a different benchmark rate to repo - referencing back to what repo did or didn't do is missing the point. The important question (for SA HL) is what JIBAR did

 

[TheBadMadMan]

JIBAR is no more or less set in stone than repo.

I was about to say

 

[RonSwanson]

I have taken occupation of a property I am in the process of purchasing, the pool heat pump, it trips the breaker every-time its switched on, the electrician came and did a CoC and said all from an electrical installation was fine but he will not test the Heat Pump as that is not part of his scope.

In the Property condition report the pool pump is said to working condition, nothing else disclosed. I asked the agent, she says she was not even aware that there was a heat pump and none of the tenants that she has leased to for the past 5 years never reported anything.

What will be the best way to approach this, the Transfer Attorneys lodged yesterday.

Let the attorneys know, in writing, soonest.
"Not in scope" is BS. The owner either gets it fixed, or you will fix it and the transferring attorneys deduct the cost from the owner's money.

 

[Erohann]

Registered today... yay

 

[Brawler]

So I am in my new house.
It's been lodged so should be in my name soon. Currently paying occupational rent.
I've loving the new place but since moving in I have noticed a few things that probably should have been disclosed.

For example:
1. "Brick is loose on the wall" was disclosed but it did not say the whole wall will collapse if you open the door next to it. This door actually does not close if opened as the wall leans over when the gate is open.

2. A crack in 1x tile was disclosed but on closer inspection, I see there is also a crack at the back of the toilet that goes all the way to the tiles and I am wondering if there isn't a small water leak causing the tiles to lift.

Do I have any recourse?