THE MONETARY POLICY COMMITTEE INCREASES THE REPO RATE (AGAIN)
In a decision taken earlier today, the Monetary Policy Committee decided to increase the REPO rate by 0.25%, meaning the REPO is now 4% with prime at 7.50%. One of the reasons for the increase is the spike in both local and international inflation.
South Africa is likely to see at least three interest rate hikes in 2022 as the South African Reserve Bank (SARB) has indicated that it will begin unwinding its accommodative monetary policy stance, say economists at Momentum Investments. Increases in prices for water and electricity also pose an increase for further rate increases.
Increasing the cost of borrowing and repayment of loans for all classes of citizens, the time to consider that sale may be closer than you think.
But the great news is that it is still lower than 2018 when prime rate was back up at 10.5%.
So you will still make massive savings, The prime rate has risen slightly by 0.25%... What does this mean for me?
• R1 million home loan will cost R152 more per month; • R1.25 million home loan will cost R190 more per month; • R1.5 million home loan will cost R228 more per month; • R2 million home loan will cost R304 more per month; and • R3 million home loan will cost R457 more per month.
The experts predict there will be more interest rate rises to come this year – a sign that the South African economy is recovering in this post-pandemic world. Owning a property is not a short-term scheme, it’s a long term investment. That’s why it’s important to keep in mind that even if rates do rise, they will not do so suddenly, nor will these rises be dramatic.
Contact us now to do a pre qualification on what you can afford and where to buy.