Reminder: The next interest rate announcement is THIS week
There will be three more interest rate announcements in 2023, the next of which will take place this week on Thursday, 20 July at 15:00. Following that, the remaining dates for the year are Thursday, 21 September and Thursday, 23 November. Early suggestions are there could well be yet another interest rate hike on Thursday, dealing yet another blow to South Africans in […]
There will be three more interest rate announcements in 2023, the next of which will take place this week on Thursday, 20 July at 15:00.
Following that, the remaining dates for the year are Thursday, 21 September and Thursday, 23 November.
Early suggestions are there could well be yet another interest rate hike on Thursday, dealing yet another blow to South Africans in debt.
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As a reminder, the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) voted to hike interest rates by 50 basis points in May.
That decision took the country’s repurchase rate to its 8.25% while the prime lending rate rose to 11.75%.
Watch this space for this week’s announcement.
WHAT YOU ARE CURRENTLY PAYING ON YOUR BOND REPAYMENTS
Currently, on a home loan of R1 million at the new prime rate (11.75%), the last hike saw payments increase by R344 a month, while a R2 million bond outstanding now costs R689 more each month.
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The table below shows both ‘old’ and ‘new’ monthly bond repayments on various bond values assuming no deposit and that repayments are at prime:
| Bond value (20 years) | Old monthly cost (11.25%) | New monthly cost (11.75%) | Change |
| R750 000 | R7 869 | R8 128 | +R259 |
| R800 000 | R8 394 | R8 670 | +R276 |
| R850 000 | R8 919 | R9 212 | +R293 |
| R900 000 | R9 443 | R9 753 | +R310 |
| R950 000 | R9 968 | R10 295 | +R327 |
| R1 000 000 | R10 493 | R10 837 | +R344 |
| R1 500 000 | R15 739 | R16 256 | +R517 |
| R2 000 000 | R20 985 | R21 674 | +R689 |
| R2 500 000 | R26 231 | R27 093 | +R862 |
| R3 000 000 | R31 478 | R32 511 | +R1032 |
| R3 500 000 | R36 724 | R37 930 | +R1206 |
| R4 000 000 | R41 970 | R43 348 | +R1378 |
| R4 500 000 | R47 217 | R48 767 | +R1550 |
| R5 000 000 | R52 463 | R54 185 | +R1722 |