Which way next?

The prime interest rate is currently 9% p.a., a level last seen in May 1974. In August 1998 it was 25.5%. This implies a new mortgage bond of R1m at prime requires a monthly repayment of R8,998 whereas in August 1998 it would have been R21,387. (http://www.resbank.co.za)

This week’s theme: Housing Finance in SA

One response to “Which way next?

  1. Lee-Ann

    10 years Ago

    To really understand the “benefit” of this one would need to understand home price inflation, to know if the real payments for the same house have gone down or not.

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