How the new repo rate will impact your bond repayments
This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.
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 |
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation