If you are working to a tight monthly budget and you can afford to, it might be a good idea to fix your rate now, even though fixed rates are usually higher than variable rates. Many people make the mistake of waiting for rates to rise before locking themselves into a fixed rate. “Before buying a property, stress test your budget to ensure you will still be able to meet your mortgage repayments if rates start to rise. Should the interest rate go up, you need to be sure you will still be able to afford your monthly instalments” noted Craig Hutchison, CEO of Engel & Völkers Southern Africa.
There are two interest rate options to choose from: