Another Interest Rate Hike
Category Property News
In its ongoing bid to curb inflation the reserve bank announced a further interest rate increase of 75 basis points, on Thursday 22nd September 2022, bringing the prime lending rate to 9.75%. This brings the lending rate to pre-covid levels.
The total number of increases in the interest rate between November 2021 and September 2022 sits at six. In essence the interest rate has moved off a low base of 3.75% to 6.25% in the last ten months.
This increases the cost of credit resulting in households and business having less disposable income as they are having to service increased debt.
|
Bond Amount |
Monthly Repayment at 7.25% (18 Nov 2021) |
Monthly Repayment at 9.75% (22 Sept 2022) |
Increase |
|
R1M |
R7,904.00 |
R9,485.00 |
R1,581.00 |
|
R2M |
R15,808.00 |
R18,970.00 |
R3,162.00 |
|
R3M |
R23,711.00 |
R28,451.00 |
R4,740.00 |
|
R4M |
R31,615.00 |
R37,941.00 |
R6,326.00 |
|
Table shows difference in monthly repayments based on a 20 year bond |
|||
Author: Helen Melon Properties