INSIDE YOUR POCKET: Struggling To Cover Your Monthly Bond Repayments

Interest rates may have been muted for the majority of 2021, but 2022 has given rise to some of the biggest hikes of recent years. “The current interest rate of 9.75% is expected to increase by a further 25 basis points before the end of 2022,” comments Grant Smee, Managing Director of Only Realty Group and property entrepreneur. A 1.25% hike may seem insignificant to some wealthy homeowners, but for many South Africans the impact of this increase on home loan repayments has been especially challenging. “There is a delicate balance between affordability, income and interest rates; and quite often, small changes can make a big difference.”