What the record low interest rates mean for consumers
The further easing of monetary policy by the South African Reserve Bank (SARB) has presented a golden opportunity for consumers looking to snap their dream house on the cheap and those looking to lower their debt servicing costs.
The central bank today cut its lending rate by 50 basis points to a new record low of 3.75%.
Andrew Golding, CEO of the Pam Golding Property, said the repo rate reduction provided further incentive for savvy home buyers.
“With inflation still at the lower end of the 3-6% target band, it is also hoped that the current low-interest rates – last experienced in the early-70s, will help bolster the economy and provide prospective home buyers and investors with an incentive to make property buying decisions. These include first-time buyers, who comprise just under half the loans extended via mortgage originator, ooba,” said Golding.
FNB CEO Jacques Celliers said the rate cut will lower debt servicing costs for credit active customers.
“The rate cut is another indication of the SARB’s commitment to protect our economy and help credit active customers to reduce debt servicing costs,” said Celliers.