Over and above securing the actual capital finance for a new property purchase, it is important to understand the range of interest rates banks are presently financing at and how the personal aspects of your application can affect the interest rate offered on your home loan. Some important factors that would influence the pricing decisions include: loan to value percentages, location and physical grading of the property purchase, personal credit score ratings, borrower types [ for example self employed verses full time employed], property types [ vacant land or building loans verses completely built property structures], and finance affordability All of these factors are compiled to determine an interest rate suitable for both the lender and borrower. The only
There are, currently, many positive signs for the future of the property market. Tony Clark, MD of Rawson Properties, believes that interest rates in South Africa are set to be cut even further. Clark adds that an interest rate cut of 0.5% will benefit the property market, perhaps far more than most people realise. Currently, many households have more disposable income now than they have had in years. And buying confidence is starting to return. Added to that is the fact that interest rates are at record lows, and house prices are now more affordable. The prime interest rate is at 9.0%, and another cut could bring the rate down to 8.5%. The banks are also granting more 100%
The South African Reserve Bank cut interest rates by 0.5% last month (sept) to bring the prime rate down to 9.5%. The cut was welcomed by many consumers and homeowners. A drop of 0.5% could translate to a huge saving over the full term of your bond. While, in the short term, it means more consumers are now better able to manage their monthly debt commitments. Here's how the most recent rate cut will affect your pocket...
Interest Rates were kept unchanged yesterday (22 July 2010), leaving the prime interest rate at 10%. The South African Reserve Bank has put the breaks on rate cutting in recent months. The last interest rate cut took place in March this year. In total interest rates have been slashed by 5.5% since December 2008. But, another drop in rate has not been ruled out. Some economists are speculating that we may see a small drop in the prime lending rate before the end of this year. To date the Reserve Bank Governor. Gill Marcus, has been very cautious about the future of the inflation rate. Inflation is currently below 5% and well within the targeted band of 3% -
On March 25th, 2010 the South African Reserve Bank (SARB) cut interest rates by 0.5%.The prime rate moved from 10.5% to 10%. The Prime Interest Rate is used by the major banks on their home loan products. How Does This Interest Rate Cut Affect Your Pocket?
The lowering of interest rates has historically had a delayed effect on property prices. It was no different this time around. According to the latest ABSA House Price Index, low interest rates has been one of the major reasons for the recent increase in property prices.
Home Loan News: interest rates The South Africa Reserve Bank's monetary policy committee completed their first meeting of the year 2010, with an announcement from the new governor that interest rates will remain unchanged. The prime interest rate will remain at 10.5%; despite many calls for a cut in the lending rates. The Reserve Bank Governor, Gill Marcus, revealed on tuesday that the decision to keep the prime interest rate at 10.5% was not unanimous among the committee members, with many calling for at least a 0.5% rate cut. She added that no discussion was made about increasing rates, raising hopes that we could see a rate cut later this year. This is even more evidence that interest rates