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

Posted On Friday, 28 January 2022 21:24 Published by
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Comment from Carl Coetzee, CEO of BetterBond, on today's repo rate increase:

Carl_Coetzee_BetterBond_CEO

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

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