SA Reserve Bank Keeps Repo Rate Unchanged - Prime Rate Remains 7%
Despite todays decision by the Reserve Bank's Monetary Policy Committee that the prime interest rate will remain unchanged at 7%, it is still the lowest it's been since 1965 when it was 6.5%.
Another rate cut would indeed have been most welcome to further stimulate the economy and the property market, but the fact remains that this is the best time to buy a home. We've had five interest rate cuts during 2020 alone, and based on historic trends, we are unlikely to see dramatic rate rises in the near future. Which is great news for the market and the economy, and an incredible opportunity for more South Africans to own a home!
With the interest rate at its lowest in more than 50 years, there are many reasons for consumers to enter the market -
- Affordability has improved by 30%, which means buyers can qualify for bigger bonds
- Buyers can count on additional savings on interest and bond instalments
- No transfer duty on homes below R1 million
17 Sep 2020
Author Benhard Wiese
Author Benhard Wiese