It is not uncommon for employers to extend various benefits to their employees, including preferential or discounted interest rates for mortgages or similar financial facilities. The presumption that is then made is that upon termination of an employment contract, the employer would then convert the interest rate applicable to the facility from a preferential staff rate to a commercial lending rate. This understanding is often expressly reflected in the lending agreement, which stipulates that upon exit, commercial lending rates would apply. However, current jurisprudence suggests that it is no longer that simple.
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