South African Reserve Bank (SARB) Governor, Tito Mboweni, has announced that interest rates will remain unchanged. This is the second time the SARB has decided to leave rates following 4 consecutive rate increases.
Mboweni is concerned by the growing level of household debts, and this decision is inline with his policy to “wait and see” if the previous rate increases will filter through to consumers.
Quick HomeLoan Tip:
Pay a little more now â€“ to save a whole lot more later
While the SARB is keeping a lid on growing interest rates homeowners with large outstanding bond amount could use this opportunity to increase their monthly homeloan repayments by R100 or R200.
The effect of this increase in monthly expense will be almost insignificant when compared to the total savings you’ll make over the term of your loan.
Also, if interest rates are increased later this year you will be well prepared, having become use to paying the extra money every month.