Prime Interest Rate Remains Unchanged at 10.5%
The South African Reserve Bank announced on Tuesday 22, September 2009 that interest rates will remain unchanged for the next few months, until the Monetary Policy Committee meets again later this year.
If you have a variable rate on your bond, your rate would change with the changing of the prime interest rate, which is currently at 10.5%.
Since December 2008 the prime interest rate dropped by a total of 5%, and property prices have begun to show healthy signs of increase. Meanwhile, the banks are offering home loans up to 100%, opening the door to many more potential homeowners .
These factors are all indicating that there is no better time to enter the property market than now.
Interest rates and property prices have reached the bottom of their cycle, making home-ownership much more affordable. And property prices are set to increase again in 2010. The sooner you get into the market the faster your investment will grow, in the long term.
If you already have a bond you can still lower your monthly expenses by applying for a better interest rate on your home loan.
If you have been paying your bond for at least 18months you may now be able to qualify for a lower rate. This is based on the fact that while you’ve been paying your bond installments, you have been building a stronger credit rating and at the same time you’ve been reducing the outstanding loan amount. Speak to one of our consultants about applying for a lower interest rate.
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