Offer to purchase question

[McGuywer]

Great news! Now the fun starts for you

WRT Interest rate, I signed at prime +1.4% because it was at the upper end of my affordability scale but have a staff variation agreement that kicks in and brings it down to prime -2% once the bond is loaded.

Do you work for a bank? Or how does the staff variation work?

 

[zerocool2009]

Great news! Now the fun starts for you

WRT Interest rate, I signed at prime +1.4% because it was at the upper end of my affordability scale but have a staff variation agreement that kicks in and brings it down to prime -2% once the bond is loaded.

Most banks have that perk. I know FNB offers prime less 2%. I dont know what the others offer (but the bank help their employees).

 

[PhireSide]

Do you work for a bank? Or how does the staff variation work?

Yup. It will go up again to prime + 1.4% if I leave however, hence why 'on paper' it is still listed as prime + 1.4%

 

[MRK911]

Most banks have that perk. I know FNB offers prime less 2%. I dont know what the others offer (but the bank help their employees).

Prime -2.5% at Nedbank

 

[Speedster]

Yup. It will go up again to prime + 1.4% if I leave however, hence why 'on paper' it is still listed as prime + 1.4%

VERY nice perk. Approval from standard bank seems to have divided the loan amount into three tranches with slightly different rates for each tranche. Never seen that before.

We're still waiting to hear from the other banks.

 

[PhireSide]

VERY nice perk. Approval from standard bank seems to have divided the loan amount into three tranches with slightly different rates for each tranche. Never seen that before.

We're still waiting to hear from the other banks.

That is quite strange. I've also never heard of that being done. I also learnt what the word 'tranche' means

 

[Sinbad]

Prime -2.5% at Nedbank

Absa also offered me prime -2.5

Challenge was, because it's a joint bond, only my half was -2.5. They wanted to charge my wife prime +3 on her portion.

 

[LlamaParty]

VERY nice perk. Approval from standard bank seems to have divided the loan amount into three tranches with slightly different rates for each tranche. Never seen that before.

We're still waiting to hear from the other banks.

We have the same thing on our Standard Bank bond. Apparently it's an incentive to pay your bond off faster. They do quote the effective interest rate of the full period as well though.

 

[Toxxyc]

That is a REALLY decent rate. Which bank is it with?

65% means he probably had a deposit, meaning it really helped his interest rate.

 

[McGuywer]

Absa also offered me prime -2.5

Challenge was, because it's a joint bond, only my half was -2.5. They wanted to charge my wife prime +3 on her portion.

That is very strange.

 

[zerocool2009]

Yup. It will go up again to prime + 1.4% if I leave however, hence why 'on paper' it is still listed as prime + 1.4%

Ok, you dont work for FNB. If you leave, its still - 2% at FNB

 

[Sinbad]

That is very strange.

Now that i think about it, at that point she wasn't my wife. No staff benefits for non-spouses.

 

[Jehosefat]

That is a REALLY decent rate. Which bank is it with?

Its with Investec and yeah, pretty big deposit.

 

[PhireSide]

Ok, you dont work for FNB. If you leave, its still - 2% at FNB

I'm not taking a chance, I quite like working here

I was told the agreement falls away when a staff member leaves and it returns to the amount stated on the bond quotation.

 

[Jehosefat]

I'm not taking a chance, I quite like working here

I was told the agreement falls away when a staff member leaves and it returns to the amount stated on the bond quotation.

"Theoretically" it falls away. I know when I left Standard a few years ago it took them over two years to remove my staff rates.

 

[Speedster]

"Theoretically" it falls away. I know when I left Standard a few years ago it took them over two years to remove my staff rates.

I'm guessing you weren't reminding them each month either

 

[Jehosefat]

I'm guessing you weren't reminding them each month either

Reminded them 3 times in the first 6 months at which point I ran out of enthusiasm.

 

[zerocool2009]

Absa also offered me prime -2.5

Challenge was, because it's a joint bond, only my half was -2.5. They wanted to charge my wife prime +3 on her portion.

Wow, I found out today how Absa does joint bonds today (both parties get scored and the average is taken). ! This is a first for me. Interesting way for sure

 

[TedLasso]

Ok, you dont work for FNB. If you leave, its still - 2% at FNB

Concur. Friend I have that used to work there still has that benefit and he left them two years ago

 

[Sinbad]

Concur. Friend I have that used to work there still has that benefit and he left them two years ago

My fnb staff rate is higher than my private wealth rate #juetsaying