Credit: BUSINESSTECH - Staff Writer 19 April 2021
The South African Reserve Bank’s (SARB’s) decision to keep rates unchanged at the end of March is set to benefit South African homeowners for the rest of 2021.
With the repo rate at 3.5% and home loan base rate at 7%, realty experts have said that South Africa is now firmly a buyer’s market.
Data from FNB’s home loan calculator shows that the gross monthly household income required to qualify for a R500,000 home loan has dropped to R12,921.65.
At the same time, the monthly repayments on home loans have become more affordable, falling from R4,100 a year ago to R3,945.49 on a 20-year bond with no deposit.
By comparison, the gross monthly household income required to qualify for a R1 million home loan has dropped to R25,843.30. The monthly repayments on a R1 million home loan is now around R7,821.99 on a 20-year bond with no deposit.
View below, the Bond Amount/ Monthly repayment over a 20-year period
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