Repo rate hike not unexpected; 2022 is still a good year for property

Posted On Friday, 28 January 2022 21:24 Published by
Rate this item
(0 votes)

Comment from Carl Coetzee, CEO of BetterBond, on today's repo rate increase:


Today’s decision to push up the repo rate by a further 25 basis points is not unexpected. And while it will mean a slight increase in monthly bond repayments, it won’t have a significant immediate impact on the housing market which has shown remarkable resilience during the pandemic. 

At a prime lending rate of 7.5%, home owners can expect to pay a nominal R152 extra on a bond of R1 million. Of course this amount increases with the value of the bond, but the additional monthly payment is still well below what consumers were paying at the start of 2020 when the prime lending rate was at 10%. 

Buyer activity remains positive despite the gradual upswing in interest rates which started in November last year, and BetterBond reported a 12.5% increase in bond application approvals year-on-year in December last year. Deeds Office registrations increased by almost 11.5% for the six months ending in November, suggesting that buyers are still making the most of the favourable lending environment. 

With moderate interest hikes forecast for the next three years, we urge aspirant home owners to take advantage of the current lending environment. 

Last modified on Thursday, 10 February 2022 11:00

Most Popular

Should you rent or buy your business premises?

Jun 23, 2022
Malusi Mthuli_FNB
This is a question that most business owners will face at some point in their journey.…

April 2022 Hotel Accommodation Income Statistics continue to show a very weak picture compared to pre-lockdown times.

Jun 23, 2022
Hotels Monthly Income 2022
The StatsSA release of April 2022 preliminary monthly tourism statistics show the Hotel…

South Africa’s inflation exceptionalism: can it last?

Jun 23, 2022
Carmen Nel
South Africa is often seen as a high-beta play, be it regarding financial market risk…

Hyprop continues to reduce debt and reposition its portfolios in SA and EE

Jun 30, 2022
Skopje City Mall Playground
Hyprop, which manages dominant retail centres in mixed-use precincts in key economic…

Vaal Mall rolls up its sleeves for pothole repairs

Jun 30, 2022
Vaal Mall crew busy repairing the various potholes making easier access to the Centre.
Vaal Mall is showing their commitment towards their community by stepping up to repair…

Please publish modules in offcanvas position.