ABSA Home Loans recently sent a notice to all Stakeholders informing them that they were extending the Early Termination Period from 90 days to 180 days effective 1 September, 2015.
Read full notice by clicking on the link below.
We received emails from Members concerned that this may be against the CPA. We asked one of our advisory specialists to provide us with some clarity and following is the response:-
“Absa extended the notice period to 180 days due to delays experienced in the registration process. Just in JHB deeds office alone there is almost a 4 week delay. Further delays in clearance certificates, purchasers amending certain conditions on home loan and seller extending occupation dates etc. has also extend the registration process. The 180 days is merely to allow for sufficient time to cover cancellation issues and to ensure that the client does not have to provide a second notice period to extend in cases where these issues might arise. The communication clearly states that there is no change to the early termination penalty being charged ie. The early termination fee will still align to 90 days interest on the account. It simply means that the notice of termination will be valid for 180 days. If notice is given on 1 September instead of a hold being placed on the account for 90 days to end November 2015 it will show as end of Feb 2015.”
We hope this creates the context for the “Notice” and provides clarity.