The South African Reserve Bank’s decision to lower the repo rate by 25 basis points is encouraging news for prospective property buyers. Giving the economy a much needed helping hand. SARB’s lowered repo rate of 6,25% will automatically apply to all current bondholders and future home loan applications. Bondspark, Leadhome’s fully online and free bond origination business, is upbeat about the news.
CEO, Marcél du Toit says that Bondspark is very pleased about the change in the repo rate as SARB acknowledges the strain South African consumers are experiencing: “While we expect that this will inject some much-needed positivity into the local property market, the resulting impact on the exchange rate, and therefore on consumers’ pockets, will be closely watched.”
Despite economists’ predictions, SARB opted for change and lowered the repo rate. This drop, according to Du Toit, is exactly what South Africa’s stagnant economy needs to stimulate growth: “This could be one of the deciding factors for first-time buyers, making the prospect of owning a home all the more possible, particularly in this largely buyers’ market.”
The cut is predicted to positively impact the price of property with greater benefits for cash buyers; as well as prime-linked loans enjoying the reprieve with the reduction in interest rates.
“We are encouraging buyers to take advantage of these rate cuts and consider investing in property now. Bondspark’s unique online offering makes the application process easy and hassle-free,” says Du Toit.
