Offer to purchase question

PhireSide said:
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.
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Do you work for a bank? Or how does the staff variation work?
 
PhireSide said:
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.
Click to expand...

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 said:
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%
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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.
 
Speedster said:
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.
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That is quite strange. I've also never heard of that being done. I also learnt what the word 'tranche' means :)
 
Speedster said:
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.
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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.
 
zerocool2009 said:
Ok, you dont work for FNB. If you leave, its still - 2% at FNB
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I'm not taking a chance, I quite like working here :ROFL:

I was told the agreement falls away when a staff member leaves and it returns to the amount stated on the bond quotation.
 
PhireSide said:
I'm not taking a chance, I quite like working here :ROFL:

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