Home Loan Interest Rates
The current economic climate in South Africa has many prospective and current homeowners worried about rising interest rates and the cost of living, and applying for a bond may seem like something only a select few can afford to do.
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The South African housing market has seen a period of strong growth over the past two years, with low interest rates and a strong demand for property driving sales and pushing up house prices. However, this boom is beginning to cool off as interest rates rise and the cost of living continues to increase.
The Monetary Policy Committee (MPC) meets six times a year to set interest rates and battle inflation. Economists’ projections can be varied, but the result is typically in the middle. A collection of estimates across the industry has allowed the team at Phoenix Bonds to put together an “average” interest rate forecast for 2023.
Most homeowners in South Africa require a home loan to purchase a home they want to live in, and paying interest on that loan is part of life. In this article, we unpack home loan interest and explains what it is, how the amounts that you pay are determined and how you can pay as little interest as possible when you buy a home.
South Africa’s property sectors are feeling the negative effects of local and global economic growth. This coupled with higher inflation and interest rates than were expected in the first quarter, people are left wondering whether this is a good time to purchase property.
Our independent bond originators in South Africa have been following the market closely and aim to put your mind at ease as we explain how home owners, landlords, and tenants can still benefit from staying in the property market.
There’s a sense of uncertainty out there. Inflation is rising, interest rates have just been increased and share prices have dropped. Predictions of a possible recession are looming. It’s easy for purchasers looking to buy a property to get disheartened, but it’s more important to consider short-term market announcements in the context of long-term economic trends.
A lot of pitfalls present themselves when buying a home through a Home Loan credit facility. If you are not careful, you may find yourself facing serious financial implications.
Interest rates are just one of the eminent issues...
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