Home Loans News:
As from today, Home Loans have become slightly less affordable following the decision by the South African Reserve Bank to increase interest rates by 0.5%. Nedbank and FNB will rise their prime lending rate to 11.5% as from today while Standard Bank and ABSA clientsâ€™ rates were raised as from the 4th and 5th Aug respectively.
Hereâ€™s how the recent Interest Rate hike will affect your monthly mortgage repayments.
Data supplied by STD Home Loans.
|Loan||Prime 11%||Prime 11.5%||Change|
|R200 000||R2 064||R2 133||R68|
|R400 000||R4 129||R4 266||R137|
|R750 000||R7 741||R7 998||R257|
|R1 000 000||R10 322||R10 664||R342|
|R1 250 000||R12 902||R13 330||R428|
|R2 000 000||R20 644||R21 329||R685|
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Speaking to Moneyweb.co.za, Herschel Jawitz, CEO of Jawitz Properties, says the decision by the Reserve Bank on Thursday to lift interest rates a further 50 basis points â€œwill have no material impact on the residential market other than to continue the current market trendâ€.
He argues that the financial effect of servicing a home loan remains â€œmanageableâ€.
Some economists are predicting further rate hikes later this year which may encourage homeowners to think about fixing their rates now.