IT'S MY HOUSE: The Upside of Interest Rate Increases
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Careen McKinnon, representative for Buyers Trust talks The Upside of Interest Rate Increases: Higher Returns on Your Home Loan Deposit.
As a potential homebuyer, seeing the ‘upside’ of interest rate increases may seem like an impossible prospect, but the same rate hike that increases the money you owe also increases the money in your savings account.
“This same rule applies to home loan deposits invested in an interest-bearing account,” says Jackie Smith, Head of Buyers Trust (a subsidiary of ooba Group) - a safe and secure bank-hosted deposit solution for homebuyers.
While deposits on home loans remained low priority for many during the COVID-19 pandemic, the latest statistics from ooba Group’s Q3 ’22 oobarometer indicate that an increasing number of South Africans are recognising that they can use deposits and earned interest to their advantage, with the year-on-year growth of the average deposit size (as a percentage of the purchase price) up a whopping 18.2%.
As a potential homebuyer, seeing the ‘upside’ of interest rate increases may seem like an impossible prospect, but the same rate hike that increases the money you owe also increases the money in your savings account.
“This same rule applies to home loan deposits invested in an interest-bearing account,” says Jackie Smith, Head of Buyers Trust (a subsidiary of ooba Group) - a safe and secure bank-hosted deposit solution for homebuyers.
While deposits on home loans remained low priority for many during the COVID-19 pandemic, the latest statistics from ooba Group’s Q3 ’22 oobarometer indicate that an increasing number of South Africans are recognising that they can use deposits and earned interest to their advantage, with the year-on-year growth of the average deposit size (as a percentage of the purchase price) up a whopping 18.2%.
