{"id":367094,"date":"2020-01-17T09:08:51","date_gmt":"2020-01-17T07:08:51","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=367094"},"modified":"2020-01-17T11:32:28","modified_gmt":"2020-01-17T09:32:28","slug":"how-much-you-will-save-on-a-r1-million-home-loan-after-the-rate-cut","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/367094\/how-much-you-will-save-on-a-r1-million-home-loan-after-the-rate-cut\/","title":{"rendered":"How much you will save on a R1 million home loan after the rate cut"},"content":{"rendered":"<p>The South African Reserve Bank\u2019s (SARB) announcement to reduce the repo rate by 25 basis points will offer South Africans some much needed financial relief, says Francois Viviers, executive of Marketing and Communications at Capitec.<\/p>\n<p>The SARB\u2019s Monetary Policy Committee voted on Thursday (16 January) to cut the repo rate by 25 basis points to 6.25% (from 6.5%) reducing the mortgage rate to 9.75% (from 10%).<\/p>\n<p>Following the cut, Viviers said that consumers with a home loan of R1 million will now pay roughly <strong>R165 less per month<\/strong> or almost R40,000 less over a 20-year loan period.<\/p>\n<p>&#8220;While it may be tempting to spend this extra disposable income on a few luxuries, such as take-away coffees or a dinner out, this money can rather be used to make a difference to your future financial health,&#8221; he said.<\/p>\n<p>&#8220;This cut is an ideal opportunity to re-evaluate financial goals and take control of your money. By following a focused plan, that puts the money to good use each month, you can really help your future self, live better.\u201d<\/p>\n<p>Below he shared Capitec&#8217;s top tips to\u00a0take advantage of the repo rate drop:<\/p>\n<ul>\n<li><strong>Pay off your debt faster. <\/strong>Continue to pay off your debt as if the interest rate change has not taken place. Paying off a loan faster means that you\u2019ll save on the amount spent on interest.\u00a0 Your future self will also thank you for those few less months of loan instalments, which can be used to invest in your future or for things you actually enjoy.<\/li>\n<\/ul>\n<ul>\n<li><strong>Pay it forward<\/strong> <strong>to your future self. <\/strong>Use your bank\u2019s app to setup a recurring monthly payment into a savings plan. Once you\u2019ve built up a sizeable nest egg, which will be earning interest each month, you can use this money to buy a new household appliance, to go away on a holiday or even kick start that side hustle you\u2019ve been dreaming about. Putting R166 into a savings plan each month for 2 years quickly grows to over R4,000.<\/li>\n<\/ul>\n<ul>\n<li><strong>Study further. <\/strong>A recent poll conducted shows that 21% of South Africans name furthering their education as a savings goal. Use the monthly saving towards studying further, which could earn you a promotion or the opportunity to apply for a new exciting job.<\/li>\n<\/ul>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/366904\/relief-for-consumers-as-reserve-bank-cuts-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\">Relief for consumers as Reserve Bank cuts rates<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The South African Reserve Bank\u2019s (SARB) announcement to reduce the repo rate by 25 basis points will offer South Africans some much needed financial relief, says Francois Viviers, executive of Marketing and Communications at Capitec.<\/p>\n","protected":false},"author":10,"featured_media":126067,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1798,26],"class_list":["post-367094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-capitec","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/367094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=367094"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/367094\/revisions"}],"predecessor-version":[{"id":367176,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/367094\/revisions\/367176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/126067"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=367094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=367094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=367094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}