Repo rate drops 25 basis points

Homeowners can breathe a sigh of relief, knowing they will have a little extra in their pockets for the festive season. Another cut in the prime lending rate will bring welcome relief to homeowners, who will now pay less on their monthly bond repayments. Today’s decision means the repo rate has fallen by 150 basis points since November 2024.
 
BetterBond’s latest data indicates that the residential property market is steadily gaining momentum. Home loan applications have increased by 30% since the third quarter of 2023 – the highest level since early 2022. The percentage of home loans granted to first-time buyers is 17.4% higher year-on-year, an important sign of market recovery. Deposits required for bonds are also trending lower, declining by 21% for new buyers.

Today’s rate cut is expected to further improve affordability and access to credit, giving buyer confidence another welcome boost as we head into the festive season