Interest rate hike

Governor of the SA Reserve Bank, Lesetja Kganyago, has dealt yet another killer blow to the wallets of already suffering South Africans. Photo: Gallo Images / Foto24 / Brendan Croft

Interest rate hike: How much MORE you will now pay on your monthly bond [table]

Governor of the SA Reserve Bank, Lesetja Kganyago, has dealt yet another killer blow to the wallets of already suffering South Africans.

Interest rate hike

Governor of the SA Reserve Bank, Lesetja Kganyago, has dealt yet another killer blow to the wallets of already suffering South Africans. Photo: Gallo Images / Foto24 / Brendan Croft

Governor of the SA Reserve Bank, Lesetja Kganyago, on Thursday hiked the repo rate by another 75 basis points in yet another killer blow to the wallets of already suffering South Africans.

The latest move brings the repo rate to 5.5% and the prime rate to 9%.

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Three (of the five) members of the monetary policy committee supported the increase, while one wanted 100 basis points and another preferred a 50 basis point hike. 

The increase represented the biggest hike since September 2002 – 20 years ago almost – when the repo rate was hiked by 100 basis points.

The latest hike follows the shocking inflation number that was released on Wednesday this week which indicated that consumer inflation had reached 7.4%, the highest level in 13 years.

What does the latest increase mean for those with monthly bond repayments to pay?

On a home loan of R1 million at the prime rate (9%), the latest hike will increase payments by R476 a month, while a R2 million bond outstanding with now cost R954 more each month.

The handy table below shows both ‘old’ and ‘new’ monthly bond repayments on various outstanding bond values (assuming your repayments are at prime):

Bond value (20 years)Old monthly cost (8.25%)New monthly cost (9%)Change
R750 000R6 390R6 748+R358
R800 000R6 817R7 198+R381
R850 000R7 243R7 648+R405
R900 000R7 669R8 098+R429
R950 000R8 095R8 547+R452
R1 000 000R8 521R8 997+R476
R1 500 000R12 781R13 496+R715
R2 000 000R17 041R17 995+R954
R2 500 000R21 302R22 493+R1 191
R3 000 000R25 562R26 992+R1 430
R3 500 000R29 822R31 490+R1 668
R4 000 000R34 083R35 989+R1 906
R4 500 000R38 343R40 488+R2 145
R5 000 000R42 603R44 986+R2 383