Cape Coastal Homes Logo
You are here: Cape Coastal Homes / Latest News / Breaking News Sa Reserve Bank Increase Prime Lending Rate To 825 Repo Rate 475

BREAKING NEWS: SA Reserve Bank Increase Prime Lending Rate To 8.25% - Repo Rate - 4.75%

SHOWING ARTICLE 150 OF 1126
GALLERY

BREAKING NEWS: SA Reserve Bank Increase Prime Lending Rate To 8.25% - Repo Rate - 4.75%

The SA Reserve Bank's MPC hiked the repo rate on 19 May 2022, to 4.75% and the prime rate to 8.25%.

On a home loan of R1 million over a 20 year period, the bond repayment will increase from R8 209,49 p.m. (previously 7,75%) to R8 520,66 - an monthly increase of R311,17.

South Africans have during the last 2 years enjoyed record-low interest rates. According to Carl Coetzee, CEO of Betterbond, the recent increases in interest rates has not dampened the banks' appetite to lend. BetterBond has seen an almost 10% increase in the ratio of formally granted bonds for April, year-on-year, which is significant coming off the high base set last year. With some banks offering loans of up to 105% for qualifying applicants, there are options for aspirant homeowners.

South African property owners and buyers are still in single digit territory with the prime lending rate below the 10% it was before the pandemic, and there are still opportunities for buyers across all price bands to invest in property.

Working with a bond originator is definitely recommended - as "creating competition amongst banks" will assist buyers to secure a lower interest rate which will have a favourable impact on bond repayments as the interest rate cycle moves upwards.

Author Benhard Wiese
Published 19 May 2022 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Cape Coastal Homes website is accurate and up to date, Cape Coastal Homes makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.