Prime Interest Rate Increased by 0.75% to 10.5%
Category Property news
Prime Interest Rate Increased by 0.75% to 10.5%
The South African Reserve Bank's Monetary Policy Committee (MPC) had their final meeting for the year today and decided to raise the repo rate by 75 basis points, pushing the prime interest rate from 9.75% to 10.5%, effective from 25 November 2022.
This is the seventh consecutive hike for the year, which we anticipated after the Reserve Bank's governor, Lesetya Kganyago, said earlier this month that there was still room to raise interest rates. This latest increase pushes the repo rate to 7%, which surpasses pre-pandemic levels.
For current homeowners, this means another bond repayment increase of around R500 per R1 million. First-time buyers who started their property journey with a bond of R1 million when the prime interest rate was at 7%, will now pay an additional R2 231.
Here's an indication of how this latest increase will change your monthly bond repayments:
-
|
Bond Amount |
Prime at 9.75% |
Prime at 10.5% |
|---|---|---|
|
R1 million |
R9 485 |
R9 984 |
|
R1.5 million |
R14 228 |
R14 976 |
|
R2 million |
R18 970 |
R19 968 |
|
R3 million |
R28 456 |
R29 951 |
|
R4 million |
R37 941 |
R39 935 |
-
If your bond amount is higher than the amounts above, use BetterBond's Bond Repayment Calculator to calculate your new repayment amount.
While real estate is always a sound investment, it is critical for buyers to assess their affordability and make a purchase that allows them to still live comfortably. If you need assistance, our area specialists are always available to guide you, wherever you are in your property journey.
Author: Greeff Christie's International Real Estate
