Property and Mortgage News: Interest Rates
On Thursday, August 16 the South African Reserve Bank announced another hike in interest rates, taking the prime lending rate from 13.0% to 13.5%
This means, someone with a home loan of R500 000 taken out in June 2006 at the prime-lending rate of 10.5% now pays R1 045 a month more than in June 2006 to service that debt, following the Thursday’s rate hike – the sixth consecutive one in this cycle.
Although, interest rate hikes almost always creates a slow down in the South African property market, I prefer to maintain a positive perspective.
Many times you only become aware of your needs when you are placed in a tough situation. Rate hikes place everyone with credit under more pressure, because it becomes tougher to service those debts.
Some people will choose to complain about it, while others are able to use the situation to produce a favourable outcome.
Today YOU can choose to use this situation to produce a favourable outcome. If the reserve bank wants to hike rates, all you need to do is ask your bond consultant to find you a bank that will offer you a lower interest rate on your home loan. Thatâ€™s how you can beat the rate hike!
If you are not getting the best possible interest rate you qualify for â€“ you are simply paying too much to your bank for your mortgage.
Contact us now on 0861-111-531 and one of our bond consultants will assist you in securing a lower interest rate for you mortgage OR simply complete this online form now and we will contact you with more information.