REPO RATE INCREASE NOT TOO BAD FOR HOMEOWNERS

AN INCREASE in the repo rate of 25 basis points means homeowners with a R1 million bond will be paying R151 more a month on their loan repayments.

Ooba Group chief executive Rhys Dyer says this will take the monthly repayment from R7 753 to R7 904.

However, despite the increase, he still believes now is a good time to be a homeowner and the increase in the repo rate to 3.75% will have little effect on the sustained demand for home loans.

Latest oobarometer data reveals that the average price of a home in South Africa is around R1.3m, which means most of the country’s homeowners will have to budget for an increase of under R200 on their monthly bond repayments. “A marginal increase in the repo rate was imminent.

It’s important for homeowners to budget accordingly and to plan for every eventuality.”

At the higher end of the home loan spectrum, Dyer says loan repayments on a home purchased for R2.5m will increase by R377 a month (up from R19 382 to R19 759), while repayments on homes which were bought for R3m will increase by R452, going up from R23 259 to R23 711.

The repo rate rise will not have a huge impact on homeowners’ monthly bond repayments. PICTURE: TOWFIQU BARBHUIYA/UNSPLASH