Home Loan Interest Rate News: Interest Rates cut to 11%
The South African Reserve Bank (SARB) governor, Tito Mboweni, today announced a 1% drop in the repo rate from 8.5% to 7.5%. This is the fifth successive rate cut since Jun 08.
The prime interest rate now drops to 11%. We last experienced interest rates of this low in June 2006.
How does this affect your monthly bond repayment?
For a bond of R1mil over 20yrs, the saving amounts to about R688 per month. Over a 30 year term the saving is about R762 per month.
See table below
|Bond Amount||Loan Term||Saving|
|R1mil||20 yrs||R688 per month|
|R750k||20 yrs||R516 per month|
|R500k||20 yrs||R344 per month|
|R300k||20 yrs||R206 per month|
The real value of interest rate cuts
If you want to truly benefit from this recent rate cut, the smart decision is to continue to pay you normal monthly repayment. Paying this extra money into your bond has two major benefits.
You reduce the loan term, meaning you’ll pay off your bond sooner. And you save thousands!
Do you a question? / Need more assistance?
For more assistance with regards to applying for Home Loan finance contact one of our consultants.
Ph: 087 625 0590
or Complete This Request Form Online