Homeowners urged to consider all options on home loans
Do you have a home loan? Read up on how to ensure that repayments are made efficiently given consistent rate increases.
Steven Barker, head of home loans at Standard Bank, offered homeowners tips on how to get the best out of their home loans during difficult times and how to keep up with increasing interest rates.
Barker advised consumers to examine their options regarding home loans and keeping up with repayments in the face of increasing interest rates.
“To make it through uncertain economic times when demands on personal finances never seem to let up means finding ways of reducing the impact of interest rate increases on the family,” Barker said.
“Surviving rate increases means looking at all available options; the solution could be as simple as budgeting more effectively, or looking to other solutions such as fixing interest rates if this service is offered by your financial institution.”
Barker highlighted a few things to consider when examining the impact of increasing rates, including finding out exactly what the increase will mean to your monthly bond payment.
He stressed that once consumers are aware of how much more they will pay, they are able to select an appropriate approach.
“Another thing is to think about is the possibility of more increases occurring and taking steps to cope.”
Barker then explained that once these two issues have been considered, residents are then able to turn towards their household budget and identify areas where they can save extra money to help them cope.
He assured consumers that the trend was unlikely to continue as South Africans have always benefitted from consistent and fairly low rates. “While this is not the case at the moment, and although it is difficult to predict just how high rates will go, what is certain is that as the economy improves, so the possibility of rates decreasing is enhanced and that means more money in your pocket.”
