Residents of the Vaal Triangle should prepare themselves for a steep interest hike. Economists and property experts have been predicting an interest rate hike of 0.5% this month, but there is a chance it could actually be 0.75%. According to Absa Home Loans managing executive, Nondumiso Ncapai, the interest rate could reach 11% by the end of January. Ncapai explained considering the anticipated interest rate increase, homeowners should expect a total increase of approximately R1 000 in the their monthly repayment on an average home loan of R1.25 million rand on a loan term of 20 years as a basis, from early next year. She added homeowners must account for these in the context of other rising expenses. Homeowners should therefore plan to absorb the combined impact of these increases, by paying close attention to living costs and cutting back where possible in areas such as entertainment, clothing and travel. This comes after various consumer experts warned residents to be mindful of overspending With Black Friday just a few days away.
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