SA HOME LOANS - INTEREST RATE ADJUSTMENTS
SA Home loans DO NOT adjust their interest rates in line with SARB decisions. When the interest rates go up, then the same rules will apply, however, when the interest rates come down, then it is a totally different story. The SARB will reduce interest rates by ,25% and SA Home loans will reduce theirs by only .1% and you have to wait for the next quarter to save the .1%. All of the the sudden, SA Home loans have a totally different way of calculating the interest rate, forgetting that fact this very same rule did not apply when the interest rate went up. Ultimately, if you have a bond with SA Home loans, you are paying MORE in interest and that is id the moral of the story.
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SA Home Loans's replyOfficial
30 Sept 2024, 08:10Hi Wilna. Our Base Rate, 3-month JIBAR, is a close approximation of the REPO Rate and the adjustment to our client rates occurs on predefined quarterly reset dates. While there are timing differences, our interest rates have historically outperformed the Prime Lending Rate in a decreasing interest rate environment and even if the REPO Rate increases, our client’s interest rates remain unchanged from one quarter to the next. The Banks use the Prime Lending Rate (REPO + 3.5%) as their Base Rate to which they add a margin, whereas we use the 3-month JIBAR as our Base Rate which approximates the REPO Rate.
Regards
The SA Home Loans Team
Regards
The SA Home Loans Team
SA Home Loans's reply30 Sept 2024, 08:10
Official
Hi Wilna. Our Base Rate, 3-month JIBAR, is a close approximation of the REPO Rate and the adjustment to our client rates occurs on predefined quarterly reset dates. While there are timing differences, our interest rates have historically outperformed the Prime Lending Rate in a decreasing interest rate environment and even if the REPO Rate increases, our client’s interest rates remain unchanged from one quarter to the next. The Banks use the Prime Lending Rate (REPO + 3.5%) as their Base Rate to which they add a margin, whereas we use the 3-month JIBAR as our Base Rate which approximates the REPO Rate.
Regards
The SA Home Loans Team
Regards
The SA Home Loans Team