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Interest rate cut an 'energy boost' to encourage buyers and investors

29 Mar 2018

Today's’ decision by the Reserve Bank’s Monetary Policy Committee (MPC) to cut interest rates by 25 basis points, with the home loan lending rate now at 10% down from 10.25%, is welcome news for homeowners and would-be buyers. 
Here’s what the property industry has to say…

Lower interest rate will stimulate housing market, says ooba
Bond originator ooba welcomed the rate cut and says on a R1 million home loan, this decision will save South African homeowners approximately R39 900 over a 20-year term. The saving will be R166 on monthly bond repayments.
“ooba expects the lower interest rate to stimulate the residential housing market as prospective home buyers will now find it easier to afford the repayments on a new home loan,” says Rhys Dyer, CEO of ooba.

The current South African property market outlook remains cautiously favourable with moderate house price growth, relatively low interest rates and an increased appetite from the major lenders to lend.
A welcome boost for the economy and property market.