An interest rate cut by the Reserve Bank on Thursday looks very likely but how will this impact your bond payments?
With interest rates expected to drop again, the home loan costs for most South Africa ns are expected to ease. Picture: Thirdman/PexelsThe South Africa n Reserve Bank’s Monetary Policy Committee is expected to cut the interest rate by another 25 basis points on Thursday, most industry experts expect.
In September, for the first time in almost four years, the SARB cut the interest rate by 25 basis points, reducing the repo rate from 8.25% to 8%, while the prime lending rate dropped from 11.75% to 11.5%., then the repo rate could drop by a further 25bps to 7.75% and the prime lending rate would drop to 11.25%.Lightstone data shows that the average cost of a property in SA is around R1.4 million.BetterBond’s home loan repayment calculator.
Savings would amount to R482 since the start of the mooted interest rates cut cycle from September 2024. Bradd Bendall, head of sales at Betterbond, said that if homeowners continue to repay their home loans at the pre-interest rate cut they could“Paying more on your monthly bond amount could significantly impact the amount of interest payable over the loan period,” Bendall said.
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