The Reserve Bank has again cut lending rates

[blunomore]

Another 100 basis points.

[Garyvdh]

yay! :)

[Waaib]

Why don't they just say 1%?

[CathJ]

Damn.

Yes, yes, I know it's good for all of you with debt/bonds. But it's not good for those of us with money in the bank! :o

[JK8]

Why don't they just say 1%?

100 sounds better than 1!:)
Good news yay!!!

[Garyvdh]

Why don't they just say 1%?

it's their way of being fancy shmancy!

[Waaib]

What did it go down to and then up to and what is it on now?

Basically if people bought a house and were able to afford the repayments before it went up they've been having a hard time. How close is it to when it was at its lowest?

[CathJ]

it's their way of being fancy shmancy!

Actually...

If the rate is, say, 12%, and they say it's come down by 1%, it would techically mean it had come down by 1% of 12, which would mean it's 11.88%. So they can either say it's come down 100 basis points, which is the fancy shmancy financial term, or they can say it's come down by 1 percentage point, which is not the same as 1%.

[Vleis12]

Prime at it's lowest point in the previous cycle was 10.5%, then increased to 15.5% and is after today's cut 13%. They will cut is further during the rest of the year. Some say another 1% at the end of April.

[killadoob]

1% to means 1% off the rate, you got all confuzzled there for a second cath :p

[pjjdp]

Actually...

If the rate is, say, 12%, and they say it's come down by 1%, it would techically mean it had come down by 1% of 12, which would mean it's 11.88%. So they can either say it's come down 100 basis points, which is the fancy shmancy financial term, or they can say it's come down by 1 percentage point, which is not the same as 1%.

Jip, agreed

[blunomore]

Does anyone have a table calculating the actual monthly saving on a bond?

Thanks

[subculture]

Another 100 basis points.

and?

[blunomore]

and?

yes.

[pauld]

Does anyone have a table calculating the actual monthly saving on a bond?

Thanks

Here a nice visual graph:

http://www.fin24.com/tools/Calculators.aspx?Calc=Home

Cheers
Paul

[blunomore]

Here a nice visual graph:

http://www.fin24.com/tools/Calculators.aspx?Calc=Home

Cheers
Paul


Thanks Paul.

[xrapidx]

Dammit dammit dammit!

[Kim_Webchick]

Its great that they have but it really needs to come down some more.

[Frankie]

When do you expect to see the impact of this on home loan accounts, and what impact would it have on the monthly instalments on a bond of R1M ?

[marco79]

what impact would it have on the monthly instalments on a bond of R1M ?

Between R700 & R800 per month.

[Frankie]

Between R700 & R800 per month.
You were spot-on.

R880 to be exact.

Since Jan 09 my ABSA bond payment has dropped R1528 :D