Home Buyers Advisory Blog

Take advantage of the lowest interest rate in South Africa in 56 years

Posted by Daniel Esterhuyse on 27 May 2020 1:08:59 PM

The prime interest rate in South Africa has fallen from 10.25% in May last year to 7.25% today. That makes it the lowest home loan interest rate since 1964! For you it could mean a great opportunity to check out what you can afford...

Prime interest rates in South Africa

With rates so low, the monthly repayment of your home loan has become more affordable, falling from R7 362 per month on a 20-year home loan of R750 000 to only R5 940 per month. That is a massive saving of R1 422 every month that will result in a saving in total interest payments of R341 280 when calculated over the 20 year period.

I want to find out if I am home buyer ready

Similarly the total household income before deductions required to qualify for a home loan of R750 000 is now down from R24 550 to around R19 800. And for a home loan of R650 000 you will now need a salary of only R17 150 - that is if you qualify for the prime interest rate of 7.25%

Effect of interest rate on home loan qualification and affordability, May 2020
So how do you make use of this unique opportunity? Are you permanently employed and have a good credit record? Contact us today to find out if you qualify for this unique opportunity, and who knows, maybe you can get that home of your own. 

Visit www.homeofmyown.co.za where you can browse our approved developments such as Sky City, Leopard's Rest, Protea Glen, Royal Cradle, Dawn Park, Daveyton Glen and more. 

View our approved new developments

We bought with Homy #escapetherentaltrap


Topics: Affordability, Home Loan, Credit profile