With the previous repo rate hike (it stayed the dame this month) bond holders repaying a R1 Million home are now having to pay around R10 800.
This is because as the Repo Rate goes up consumers are having to pay more for the financing of their loans.
That has roughly been a massive increase of R3000 over the past 19 months.
‘a massive increase of R3000 over the past 19 months’
This increase has placed many who did not count on the rates going up quite so much under sever debt stress. Especially since their income has not gone up by as much during these 19 months.
And we know bonds take years and years to pay off with many being financed over 25 years or even 30 years.