The South African Reserve Bank cut interest rates by 0.5% last month (sept) to bring the prime rate down to 9.5%.
The rate cut was expected by most economists and will provide a welcome boost to the local economy.
The cut was also 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…
| Bond Amount | Term | Monthly Saving |
|---|---|---|
| R1mil | 20yrs | R328 |
| R800k | 20yrs | R263 |
| R250K | 20yrs | R115 |
While a drop in the prime interest rate equates to a drop in your monthly expenses. it also means that you are now able to qualify for a bigger home loan.
With a salary of R20,000/pm, you could now qualify for a bond of up to R640k
In 2008 (when the prime rate was 15.5%), you could only qualify for a maximum bond of R440k, with a salary of R20,000/pm
I have a bond loan with FNB but I am sitting at the interest of 11.5 % and it is very hard for me because I cannot even fix the house. Can I get help ? I apply for rate review but it was declined. Please help.
Hi,
I have a gross income of R 38750.00 and after deductions I take home R 25092.00.
I already have a bond, but I also have a lot of other accounts, loans etc.
What can FNB do for me?
Having been unaware of the recent cut in rates due to travel commitments, this Newsletter has kept me updated at a glance. Well done and thank you for a very informative and user friendly info spread.