The final straw - credit rating [resolved]

[schuits]

So I'm applying for a home loan. I get told my interest rate offer is 0.4% higher than they initially proposed, as my credit rating isn't super.
I asked why.
"We see you have had a 4 month arrears with your iBurst account"
WTF!!!! Its a debit order. It's never bounced...ever! iBurst just cost me over R56k in additional interest
I'm INCREDIBLY .......

 

[froot]

Eish.

Go pull your Transunion or XDS account and check for yourself, and check with iBurp what's up.
Then go back to your bank and have it fixed.

 

[schuits]

Eish.

Go pull your Transunion or XDS account and check for yourself, and check with iBurp what's up.
Then go back to your bank and have it fixed.

Yeah. Apparently theres a rectification procedure via Transunion. Its a arduous thing to do...sigh

 

[Mk786]

Iburst Sucks

 

[schuits]

I spoke to SA Homeloans. They say if I dispute the credit thing then my rating gets red flagged until the dispute is sorted. Which can take weeks. So I definitely won't do that.
Only thing I can think of is phone iBurst accounts and get them to fix it.

 

[TheGrove]

I had a similar issue, I got a letter from the company stating that I was in fact not behind and the account had been settled ages ago.

Sent that off to my banker and all was resolved.

 

[*Medusa*]

Geepers! Also find out if you can report them for this negligence. This is just not on. Escalate this to the iburst board.

 

[schuits]

Hats off to iBurst.
I contacted them via their site. And then phoned. They were on it and will fix the issue including sending me a letter that the error was on their side.
To be honest I didn't expect they would be so quick.

 

[F1 Fan]

Hats off to iBurst.
I contacted them via their site. And then phoned. They were on it and will fix the issue including sending me a letter that the error was on their side.
To be honest I didn't expect they would be so quick.

Let us know what the bank says

 

[TheGrove]

Hats off to iBurst.
I contacted them via their site. And then phoned. They were on it and will fix the issue including sending me a letter that the error was on their side.
To be honest I didn't expect they would be so quick.

The company I dealt with was also very good about it, I think they realise they can get into a bit of kark if they don't fix it.

 

[Other Pineapple Smurf]

I spoke to SA Homeloans. They say if I dispute the credit thing then my rating gets red flagged until the dispute is sorted. Which can take weeks. So I definitely won't do that.
Only thing I can think of is phone iBurst accounts and get them to fix it.

SA Homeloans had an issue with my wife over a R29 payment to Woolies 4 months before we applied for the loan. We had to motivate why it should not count against us (My wife was not aware of monthly charges even if the card was paid in full).

So I'm applying for a home loan. I get told my interest rate offer is 0.4% higher than they initially proposed, as my credit rating isn't super.
I asked why.
"We see you have had a 4 month arrears with your iBurst account"
WTF!!!! Its a debit order. It's never bounced...ever! iBurst just cost me over R56k in additional interest
I'm INCREDIBLY .......

But anyway its very obvious you are not aware of the fact that SA Homeloan will continue to review your interest rate on a regular basis (like as in 2-6 month intervals) and that the rate you get today is not guaranteed. Your rate can go up or down.

They also use the money market, not the repo rate. While traditionally they have been on par with each other, there is no guarantee.

This is the reason why I did not go with SA Homeloans even though they offered me a 95% over FNB's 90%.

 

[supersunbird]

SA Homeloans had an issue with my wife over a R29 payment to Woolies 4 months before we applied for the loan. We had to motivate why it should not count against us (My wife was not aware of monthly charges even if the card was paid in full).



But anyway its very obvious you are not aware of the fact that SA Homeloan will continue to review your interest rate on a regular basis (like as in 2-6 month intervals) and that the rate you get today is not guaranteed. Your rate can go up or down.

They also use the money market, not the repo rate. While traditionally they have been on par with each other, there is no guarantee.

This is the reason why I did not go with SA Homeloans even though they offered me a 95% over FNB's 90%.

They use the JIBAR rate (JHB interbank rate) as the base and its adjusted quarterly (every 3 months basically).

I think the last JIBAR meeting was 18 January 2014 (they don't publish the meeting date on the loan statements anymore) and I see my interest rate has gone up from 6.9% to 7%. So 7% for me till they have their April meeting.

 

[schuits]

They use the JIBAR rate (JHB interbank rate) as the base and its adjusted quarterly (every 3 months basically).

I think the last JIBAR meeting was 18 January 2014 (they don't publish the meeting date on the loan statements anymore) and I see my interest rate has gone up from 6.9% to 7%. So 7% for me till they have their April meeting.

I am aware of the JIBAR system they use. Even though I don't fully comprehend it.
FNB "offered" me a laughable 11.8%. Compared to that SA Homeloans was talking about a 8.9% rate...so it's a no brainer.

I expect it will go up when they do their next adjustment due to the .5% interest rate hike.

 

[hellfire]

I am aware of the JIBAR system they use. Even though I don't fully comprehend it.
FNB "offered" me a laughable 11.8%. Compared to that SA Homeloans was talking about a 8.9% rate...so it's a no brainer.

I expect it will go up when they do their next adjustment due to the .5% interest rate hike.

It's quite simple. It is a rate agreed between the banks as to how much they will charge to lend money to each other.
As opposed to the REPO which is the rate charged by the SARB to lend money to the banks.

The JIBAR is agreed quarterly at a meeting of industry/regulatory representatives.
The REPO is agreed quarterly at a meeting of the Monetary Policy Committee.

 

[Other Pineapple Smurf]

They use the JIBAR rate (JHB interbank rate) as the base and its adjusted quarterly (every 3 months basically).

I think the last JIBAR meeting was 18 January 2014 (they don't publish the meeting date on the loan statements anymore) and I see my interest rate has gone up from 6.9% to 7%. So 7% for me till they have their April meeting.

Yes but the interest rate that SA Homeloans offers you (most normal people will accept this as PRIME + whatever) is not a fixed amount and they review it on a regular basis. So while the OP might be getting 8.9% today, he could be paying at 10% in 6 months time even if the JIBAR did not change.

The fact that this done without the clients involvement or request makes it very high risk.

 

[Other Pineapple Smurf]

I am aware of the JIBAR system they use. Even though I don't fully comprehend it.
FNB "offered" me a laughable 11.8%. Compared to that SA Homeloans was talking about a 8.9% rate...so it's a no brainer.

I expect it will go up when they do their next adjustment due to the .5% interest rate hike.

I used OOBA for my homeloan and when they showed FNB my SA Homeloans offer, FNB immediately gave me a better rate. You have nothing to lose but 11.8% is full on rape (mine is PRIME + 0.5%)

 

[supersunbird]

Yes but the interest rate that SA Homeloans offers you (most normal people will accept this as PRIME + whatever) is not a fixed amount and they review it on a regular basis. So while the OP might be getting 8.9% today, he could be paying at 10% in 6 months time even if the JIBAR did not change.

The fact that this done without the clients involvement or request makes it very high risk.

Its JIBAR + whatever (think mine is JIBAR + 1.7, don't have access to the old format statements at work), its fixed. Hasn't changed in the near 5.5 years for me.

 

[Other Pineapple Smurf]

Its JIBAR + whatever (think mine is JIBAR + 1.7, don't have access to the old format statements at work), its fixed. Hasn't changed in the near 5.5 years for me.

JIBAR + 1.7 is a good rate, seldom heard of anymore for new clients. One thing I picked up about the complaints with SA Homeloans last year is it all applies to new customers and not older customers. I got the impression that they change their policy on a regular basis.

Personally I was all excited to go with them as I originally talked to people who used them 10 years ago. Then I saw the complaints from new customers and even asked the SAHL agent about these (he dodged the link rate question).

 

[schuits]

Yes but the interest rate that SA Homeloans offers you (most normal people will accept this as PRIME + whatever) is not a fixed amount and they review it on a regular basis. So while the OP might be getting 8.9% today, he could be paying at 10% in 6 months time even if the JIBAR did not change.

The fact that this done without the clients involvement or request makes it very high risk.

From their page
" Because we’re flexible and want your home loan to be appropriate to your changing needs, there are many options available: fixed, variable and capped rates."

Thanks for the warning. I'll make sure to read exactly which option I'm getting. Obviously a JIBAR linked rate is preferred where the "+ whatever" part is fixed.