Interest Rates cut to 11%

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!

Home Loan Tools:
Apply Online
Bond Calculator
Prime Interest Rate History

Do you a question? / Need more assistance?

CONTACT US

For more assistance with regards to applying for Home Loan finance contact one of our consultants.
Email: olen@propertyloans.co.za
Ph: 087 625 0590
or Complete This Request Form Online

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1 Comment on “Interest Rates cut to 11%”

  1. And now Mr Tito stopped the cutting? I think the Reserve Bank is making a big mistake. Many people need help NOW and this is what they get?

    Admin inflation is sky high. Look at electricity going up. It is not the consumer’s fault, so don’t punish them.

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