For homeowners already facing financial strain, even a minor increase can determine whether they keep up with their payments or fall into arrears and face potential over-indebtedness.
South Africa’s property market is caught between demand for housing and declining affordability.
Buyers qualify for smaller bonds, existing homeowners face higher repayments, and developers and investors must contend with weaker demand and higher financing costs, says René Moonsamy, the chairperson of the National Debt Counselling Association (NDCA).
On Thursday, July 23, the South African Reserve Bank (SARB) will announce the July interest rates decision following the Monetary Policy Committee meeting.
Asked how the upcoming interest rate announcement will affect the property market, NDCA, the organisation which represents debt counsellors operating in South Africa, said the decision will come at a difficult time for consumers and the property market.
