When you buy a home, there is more to consider than your monthly home loan instalment. Often first-time buyers overlook or just aren’t aware of all the costs that come with purchasing a home, and when summed up, it’s often an unpleasant surprise. We break it down into the various costs you need to consider when buying your home, and then those that you’ll need to budget for as a new homeowner.
Very few people can buy their first home ‘in cash’ and therefore rely on banks to help them make homeownership possible through taking up affordable credit. A home loan which is paid off over an extended period is both a reality and practical necessity for many first-time and repeat homebuyers.
Economists projected rate cuts and relief for South African consumers towards the end of 2024, and those predictions have finally come to pass with a reduction in the repo and prime lending rate of 25 basis points on 19 September 2024. The repo rate is now 8.00% and the prime lending rate, 11.50%.