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
Lee-Ann