The SARB Monetary Policy Committee (MPC) on Thursday 24 November announced another interest rate hike of 75 basis points (bp), marking the third hike of this quantum in a row, and taking the cumulative hike in the current cycle to 350bp.
The repo rate is now sitting at 7.00%, with the prime lending rate at 10.50%.
According to The OOBA Home Loan Repayment Calculator, prospective bondholders can expect the following monthly repayments:
R1 000 000 - 00, R9 984 per month
R1 500 000 - 00, R14 976 per month
R2 000 000 - 00, R19 968 per month
First time buyers should not be deterred by the increase in the prime lending rate. The major banks are still granting 100% home loans and have programs in place to encourage young professionals to purchase their property. There are many tips and tricks that first time buyers can use to reduce the financial pressure of monthly bond repayments. Below are a few:
At Seeff we can help you purchase your first home and guide you through the various finance options. Get pre-qualified with OOBA Home Loans.