The South African Reserve Bank (SARB) has cut the repo rate by 50 basis points to five percent. This means that the prime lending rate offered by the banks has also been lowered to 8,5%
This is good news for home buyers, since you will now qualify for a little more finance. Existing homeowners on a variable interest rate will also pay a little less each month.
For those home owners looking to save and who can afford the current installment, you may try to fix your installment so you do not pay the lower amount. This means a larger portion will be used to repay the principal amount and will save you thousands of rands on interest and greatly reduce your repayment term.