Offer to purchase question

zerocool2009

zerocool2009

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Speedster said:
Why?
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Jibar rates isnt linked to the reserve bank rates (or calls). Meaning, someone might jump now for a great rate via SA HL, and 3 months down the line they increase it (as they wishes). I never heard of someone happy with SA HL to be honest. So just be careful please.
 
Speedster

Speedster

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zerocool2009 said:
Jibar rates isnt linked to the reserve bank rates (or calls). Meaning, someone might jump now for a great rate via SA HL, and 3 months down the line they increase it (as they wishes). I never heard of someone happy with SA HL to be honest. So just be careful please.
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Still hasn't answered my question though - are they access bonds?
 
TheBadMadMan

TheBadMadMan

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zerocool2009 said:
Jibar rates isnt linked to the reserve bank rates (or calls). Meaning, someone might jump now for a great rate via SA HL, and 3 months down the line they increase it (as they wishes). I never heard of someone happy with SA HL to be honest. So just be careful please.
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Why?
 
diapason

diapason

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zerocool2009 said:
Jibar rates isnt linked to the reserve bank rates (or calls). Meaning, someone might jump now for a great rate via SA HL, and 3 months down the line they increase it (as they wishes). I never heard of someone happy with SA HL to be honest. So just be careful please.
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I was with SA Home Loans for my previous flat from 2000, ie early SAHL days, and when I sold that and bought my present flat in 2009 I stayed with them as I was happy with them. The only times I heard complaints about them was from people who didn't understand that their interest rates move at different times from prime/repo.
 
zerocool2009

zerocool2009

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TheBadMadMan said:
I have and I do.

Unless I'm missing something? Perhaps be more specific as to why?
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Ok, prime is now 7% right!

Lets say you apply at SA HL, they give prime less 0.5%! All great. Then SARB review the normal rates, and lets say they cut it. But SA HL do nothing. After 3 months your rate goes up with 1.5% (and they can do it), as it isnt linked with the SARB rates (as with the big 5 banks). In short, they can do as they please
 
TheBadMadMan

TheBadMadMan

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zerocool2009 said:
Ok, prime is now 7% right!

Lets say you apply at SA HL, they give prime less 0.5%! All great. Then SARB review the normal rates, and lets say they cut it. But SA HL do nothing. After 3 months your rate goes up with 1.5% (and they can do it), as it isnt linked with the SARB rates (as with the big 5 banks). In short, they can do as they please
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Lolwut
 
Sinbad

Sinbad

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zerocool2009 said:
Ok, prime is now 7% right!

Lets say you apply at SA HL, they give prime less 0.5%! All great. Then SARB review the normal rates, and lets say they cut it. But SA HL do nothing. After 3 months your rate goes up with 1.5% (and they can do it), as it isnt linked with the SARB rates (as with the big 5 banks). In short, they can do as they please
Click to expand...
They can't do as they please. They peg to JIBAR - which is an agreed rate between all the banks. But yeah, they do not adjust it as and when SARB adjusts repo. It does tend to lag a bit.
 
zerocool2009

zerocool2009

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Sinbad said:
They can't do as they please. They peg to JIBAR - which is an agreed rate between all the banks. But yeah, they do not adjust it as and when SARB adjusts repo. It does tend to lag a bit.
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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

Well, personally, I think prime rate is better than Jibar rate (but everyone to their own)
 
Speedster

Speedster

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Sinbad said:
They can't do as they please. They peg to JIBAR - which is an agreed rate between all the banks. But yeah, they do not adjust it as and when SARB adjusts repo. It does tend to lag a bit.
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They adjust at the start of each quarter, not following MPC meetings.
 
TheBadMadMan

TheBadMadMan

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Sinbad said:
They can't do as they please. They peg to JIBAR - which is an agreed rate between all the banks. But yeah, they do not adjust it as and when SARB adjusts repo. It does tend to lag a bit.
Click to expand...
This. Think of it like smoothing out the bumps. Both the ups and the downs.
 
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