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 clients’ rates were raised as from the 4th and 5th Aug respectively.
Here’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 |
| Get A Lower Interest Rate on your Bond- Click Here | |||
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 “will 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 “manageableâ€.
Some economists are predicting further rate hikes later this year which may encourage homeowners to think about fixing their rates now.
Before you decide to fix your mortgage rate Read This Article – you’ll find that there are many other ways to Beat the Interest Rate Hike
Related Mortgage Articles:
SA Home Loans VariFix
Don’t Fix your Home Loan Rate
How to beat the Home Loan hike
How to lower your bond repayments