Following the South African Reserve Bank’s move to keep interest rates at the same level, coupled with the notion that the bank may have reached the peak of its hiking cycle; home owners will probably be reluctant to fix their home loan interest rates. “Although there’s a good chance that interest rates may have peaked; consumers still need to tread with caution due to possible risks of further downgrades to our sovereign credit ratings. Therefore, home owners may find current fixed interest … [Read more...] about Should you fix your home loan interest rate?
interest rate
The upside of an interest rate hike
As we race towards the end of 2015 and a well deserved break, some of us are fortunate enough to receive a 13th cheque or bonus. Although it is tempting to spend this money on upcoming festive season activities, the recent interest rate hike has left many consumers unsure as to how they should be spending this extra money. The recent repo rate increase by the South African Reserve Bank may steer many South Africans to use the biggest portion of their 13th cheque or bonus to service their … [Read more...] about The upside of an interest rate hike
Should you fix your home loan rate now?
With interest rates seemingly on an upward cycle, the issue of fixing home loans in the market becomes a hot topic. However, fixing interest rates on your home loan requires a carefully laid out strategy and not a knee-jerk reaction to interest rate increases. Banks do not fix home loan interest rates based on the current repo rate, but on the market interest rate curves which are constantly changing. "The market interest rates are as dynamic as the share market, meaning that market … [Read more...] about Should you fix your home loan rate now?
Interest rate hike expected
A 25 basis point interest rate hike can be expected at Thursday's meeting of the Monetary Policy Committee (MPC) of the SA Reserve Bank (Sarb), according to Peter Attard Montalto, Nomura analyst. "Rewinding to the last meeting, it is clear that two out of the six members were happy enough to hike rates then (by 25bp). We believe they were Deputy Governor Daniel Mminele and Deputy Governor Kuben Naidoo," said Montalto. "We believe there is no substantive reason for those two to not back a … [Read more...] about Interest rate hike expected
Contemplating fixing the interest rate on your bond?
While the current prime interest rate is still considered to be comparatively low, Reserve Bank Governor, Gill Marcus has forewarned the South African public that we are currently in an increasing rate cycle and consumers should expect to see further rate hikes in the future. Considering this, it is no wonder that many homeowners are contemplating fixing the interest rate on their bonds, says Adrian Goslett, CEO of RE/MAX of Southern Africa. Who would benefit from a fixed interest rate? … [Read more...] about Contemplating fixing the interest rate on your bond?
