What will you pay for your home after the latest repo rate increase?
Category Property news
The Monetary Policy Committee (MPC) met for the first time this year and decided to raise the repo rate by 25 basis points to fight inflation, which is largely due to ongoing international conflict and a global increase in oil prices.
While these adjustments are necessary for economic stability, the basis point increase also raises the prime interest rate from 10.5% to 10.75%, effective from 26 January 2023, meaning that current homeowners will now pay an additional R168 per R1 million.
While property remains a sound investment, homeowners should carefully evaluate their financial situation and ensure they are able to comfortably afford their repayments. While the prime interest rate increases can be concerning, this is a great opportunity to meet with our area specialists and do a virtual valuation of your home to find out how much your investment is worth on the market.
With their extensive experience and knowledge of the market, our area specialists are your best resource. They can offer guidance and support to ensure you make informed decisions about your home, at any stage of your property journey.
Here's an indication of how this latest increase will change your monthly bond repayments:
|
Bond Amount |
Prime at 10.5% |
Prime at 10.75% |
|---|---|---|
|
R1 million |
R9 984 |
R10 152 |
|
R1.5 million |
R14 976 |
R15 288 |
|
R2 million |
R19 968 |
R20 305 |
|
R3 million |
R29 951 |
R30 457 |
|
R4 million |
R39 935 |
R40 609 |
Use BetterBond's Bond Repayment Calculator to calculate your new repayment amount, if your bond amount is higher than those we've listed above.
Author: Greeff Christie's International Real Estate
