Covid-19: Prime lending rate cut to 7.75%
Category Economic News
As at the 16 March 2020, The repo rate (rate at which the Reserve Bank lends money to the retail banks) has been reduced by a further 1% . The repo rate will now be 4.25% and the prime lending rate, will be 7.75%. This is a further reduction of 2%.
In real terms it will benefit the property owner as follows:
Your installment on a home loan of R 4 000 000 at 8.75% over 20 years would have been R 35348.43. It will now be R32 837.94, a reduction of R2510.49 per month.
Please note that this calculation has not taken into account the required deposit. Most banks are currently needing a 10%-20% deposit which will reduce your monthly payment amount even further.
If one takes the current exchage rate into account there is easily a 20% discount on purchase price. We have many tools on our website that can assist you to work out your affordability and what the transfer / bond costs could be.
We would like to remind all our clients that although our office doors are closed during the lockdown period as regulated by National Government , we are still fully available on our normal office telephone numbers and can be reached either via Cell, office, whats app, e-mail, Facebook, Linked In and Zoom:
Dawie: 082 467 1307
Office: 021-913 0634
E-mail: dawie@hproperties.co.za
Please note that the lending institutions are currently available to assist you via e-mail or telephone. Companies such as BETTER BOND can liaise with most banks to offer you the best deal available.
Author: Dawie Heydenrych
