Kleinbaai Lifestyle Estate invites everyone from first-time homebuyers to retirees to experience the vibrant community and serene living we offer.
The South African Reserve Bank’s monetary policy committee (MPC) just announced a 25 basis point interest rate cut, presenting an enhanced opportunity for property investors.
Imagine starting your journey with a home priced at R1,895,000 at Kleinbaai Lifestyle Estate. With a 20% down payment of R379,000, your mortgage amount stands at R1,516,000.
Thanks to the new interest rate of 11.50%, your monthly mortgage payments will decrease, presenting you with significant savings:
Monthly Payment Difference:
R16,429 – R16,167 = R262
Annual Savings:
R262 x 12 = R3,144
For a further detailed on the above case study:
1. Determine the Mortgage Amount:
Let’s say you’re purchasing a home priced at R1,895,000 and making a 20% down payment:
Down Payment:
20% of R1,895,000 = R379,000
Mortgage Amount:
R1,895,000 – R379,000 = R1,516,000
2. Estimate the Monthly Payment:
Monthly mortgage payments are influenced by the interest rate and the term of the loan. For this example, we’ll use a 20-year fixed-rate mortgage.
Before the Rate Cut:
Interest Rate: 11.75%
Loan Term: 20 years
With an interest rate of 11.75%, the monthly payment for a R1,516,000 mortgage over 20 years is approximately R16 429-00.
After the Rate Cut:
New Interest Rate: 11.50% (following a 0.25% rate cut)
With the new rate of 11.50%, the monthly payment for the same mortgage amount and term decreases to approximately R16 167-00.
3. Calculate the Difference:
Monthly Payment Difference:
R16 429-00 – R16 167 = R262-00
Annual Savings:
R262-00 x 12 = R3 144-00 p.a.
This reduction in your monthly payments is more than just a number; it’s a real opportunity to save on your mortgage and invest in your future at Kleinbaai Lifestyle Estate.
For more information:
E-mail: .
Tel: (+27) 082 950 3222 (Linda).
Property Developer: Devco Group
Bond originator: BetterBond
Sales: Greeff Christie’s International Real Estate – Whale Coast
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