Real Estate Investor Magazine South Africa October/ November 2019 | Page 32

FINANCING
Pay your
bond faster
BY MEYER DE WAAL
T
he Monetary Policy Committee (MPC) took a cautious
decision by announcing that interest rates will remain
unchanged. The prime lending rate therefore remains
at 10% and the repo rate at 6.5%.
The Reserve Bank reduced the repo rate by 0.25% in July.
With the repo rate now remaining at 6.5%, home–buyers and
homeowner’s benefit from the reduction in prime lending
rates.
“We feel that the biggest benefit of the reduction is that it has
created a more positive sentiment in the property industry,
which has filtered through to all stakeholders; estate agents,
bond originators, sellers, buyers, and current property owners,”
says Meyer de Waal, director of MDW Inc. and My Bond Fitness.
30
OCTOBER/NOVEMBER 2019 SA Real Estate Investor Magazine
Scenario 1 – INTEREST RATE 10.25%
Home Loan amount
Home Loan term
Interest rate
Monthly repayment
R600 000
20 years
10.25%
R5889
Scenario 2 – INTEREST RATE 10%
(save each month)
Home Loan amount
Home Loan term
Interest rate
Monthly repayment
Total savings
R600 000
20 years
10%
R5790
R 99 per month