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How the new repo rate will impact your bond repayments

22nd November 2021

     

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Bt Rhys Dyer, CEO of ooba Group

An increase in the repo rate by 25 basis points (now 3.75%) has many homeowners doing the math on their monthly home loan repayments. However, ooba Group CEO Rhys Dyer, believes that it’s still a good time to be a homeowner and that the increase will have little effect on the sustained demand for home loans. “The repayment amount on a R1 million bond will increase by R151 per month (from R7753 up to R7904).

According to the latest oobarometer data, the average price of a home in South Africa is around R1.3 million, which means that the majority of the country’s homeowners will only have to budget for an increase of under R200 on their monthly bond repayments. “A marginal increase in the repo rate was imminent. It’s important for homeowners to budget accordingly and to plan for every eventuality.” 

Looking to the higher end of the home loan spectrum, Dyer says that the repo increase stands to impact this bracket albeit not significantly. “Home loan repayments on a home purchased for R2.5 million will increase by R377 per month (up from R19382 to R19759) while homes purchased for R3 million will increase by R452 per month (up from R23259 to R23711),”

“All homeowners should take note of this increase, which is effective immediately, and budget accordingly.”      

Bond amount 7% 7.25% Increase
R1 million R7753 R7904 R151
R1.25 million R9691 R9980 R189
R1.5 million R11629 R11856 R227
R1.75 million R13568 R13832 R264
R2 million R15506 R15808 R302
R2.25 million R17444 R17783 R339
R2.5 million R19832 R19759 R377
R2.75 million R21321 R21735 R414

R3 million

R23259 R23711 R452

 

Edited by Creamer Media Reporter

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