Wednesday, 11 June 2008

Absa Home Loans Fixed Rate Policy

Absa Home Loans Fixed rates are determined on a weekly basis, based on the “Matched Funds Transfer Policy” (MFTP) rates as applied by Absa Group Treasury.

In the past, clients have had the option of taking up a fixed rate on application, final grant or after the bond is registered.

Fixed Rate policy change

With immediate effect, Absa Home Loans will only offer fixed rates on registered bonds, i.e existing business. The fixed rate may only be applied for after registration has taken place, and the applicable rate will be determined as per the fixed rates at that time, as published on, under the Rates & Fees section.

Fixed rates will only be offered on existing loans and on “registered” new loans. This policy is to be applied until further notice

Application of the policy on further advances

If the client applies for a further advance and an additional amount is to be registered, a fixed rate will only be offered after the additional amount has been registered.

Where the client will not be registering an additional amount, meaning that the bond amount registered is enough to cover the further advance amount, a fixed rate can be offered to the client, however, the fixed rate will be determined at date of Final Grant.

The above is to be applied even if the further advance amount is to be allocated to a multi-plan account.

Other ABSA Home Loan Articles:
ABSA - A switched on unit
ABSA Home Loans - International Mortgages
ABSA Home Loans - No more 100% loans
ABSA Wake Up
ABSA Affordable Housing Solutions

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