South Africa

Interest rate hike: How much MORE you will now pay on your monthly bond [table]

Governor of the SA Reserve Bank, Lesetja Kganyago, on Thursday hiked the repo rate by another 75 basis points in yet another killer blow to the wallets of already suffering South Africans.

The latest move brings the repo rate to 5.5% and the prime rate to 9%.


Three (of the five) members of the monetary policy committee supported the increase, while one wanted 100 basis points and another preferred a 50 basis point hike.

The increase represented the biggest hike since September 2002 – 20 years ago almost – when the repo rate was hiked by 100 basis points.

The latest hike follows the shocking inflation number that was released on Wednesday this week which indicated that consumer inflation had reached 7.4%, the highest level in 13 years.

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What does the latest increase mean for those with monthly bond repayments to pay?

On a home loan of R1 million at the prime rate (9%), the latest hike will increase payments by R476 a month, while a R2 million bond outstanding with now cost R954 more each month.

The handy table below shows both ‘old’ and ‘new’ monthly bond repayments on various outstanding bond values (assuming your repayments are at prime):

Bond value (20 years) Old monthly cost (8.25%) New monthly cost (9%) Change
R750 000 R6 390 R6 748 +R358
R800 000 R6 817 R7 198 +R381
R850 000 R7 243 R7 648 +R405
R900 000 R7 669 R8 098 +R429
R950 000 R8 095 R8 547 +R452
R1 000 000 R8 521 R8 997 +R476
R1 500 000 R12 781 R13 496 +R715
R2 000 000 R17 041 R17 995 +R954
R2 500 000 R21 302 R22 493 +R1 191
R3 000 000 R25 562 R26 992 +R1 430
R3 500 000 R29 822 R31 490 +R1 668
R4 000 000 R34 083 R35 989 +R1 906
R4 500 000 R38 343 R40 488 +R2 145
R5 000 000 R42 603 R44 986 +R2 383

The South African Reserve Bank’s MPC has decided to increase the repurchase rate by 75 basis points to 5.50% per year, with effect from the 22nd of July 2022.

— SA Reserve Bank (@SAReserveBank) July 21, 2022

Artmotion S.Africa

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