Interest rate hike takes effect: Here’s how much more you will pay for your car and home
The latest interest rate hike takes effect today, pushing prime to 10.75% and increasing monthly repayments on variable-rate car and home loans.
The latest interest rate hike took effect today, raising the monthly repayments on car and home loans in South Africa. For a R250,000 car loan, the additional cost is R32 per month, while a R3 million home loan sees a R505 increase. The prime lending rate climbed from 10.5% to 10.75%, immediately increasing repayments on variable-rate debt linked to prime.
The SARB's decision, while expected, was more hawkish than anticipated. The hike will add about R60,700 to the cost of a R1.5 million home loan over 20 years. Economists believe this may be the peak of the interest rate hiking cycle, depending on factors such as oil prices and inflation.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
