Go Unlimited with Magzter GOLD
Get unlimited access to 10,000+ magazines, newspapers and Premium stories for just
Try GOLD - Free
Math behind your mortgage
The Citizen
|March 27, 2025
TIPS: ARE YOU STRUGGLING WITH REPAYMENTS?
Lately, homeowners have been dreading announcements from the Reserve Bank's Monetary Policy Committee (MPC). Inflation has been running rampant due to the war in Ukraine and what we now call the post-Covid hangover. This has led to central banks hiking interest rates to combat the rising cost of living.
But what do all these technical terms mean for you, and how does it affect your pocket? The answer to this lies in understanding the math behind your mortgage.
The effect of an interest rate hike on your bond
The prime interest rate is the basic rate of interest that commercial banks charge their clients when lending them money.
In 2020, at the height of the Covid pandemic, the prime interest rate was 7%. At the time of writing, it is 9.75%.
This story is from the March 27, 2025 edition of The Citizen.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The Citizen
The Citizen
Xmas tree erection dilemma
When is the right time to put up a Christmas tree? My neighbour asked this while she helped me decorate mine.
1 mins
November 26, 2025
The Citizen
Crime scene bed bugs
RESEARCH: SILENT WITNESSES CAN HARBOUR DNA EVIDENCE FOR 45 DAYS → Science can determine gender, eye, hair and skin colour of suspects.
2 mins
November 26, 2025
The Citizen
Ramaphosa's construction dream in ruins
Abandoned projects and impunity undermine South Africa's pledge to build, writes AK Bantseke.
1 min
November 26, 2025
The Citizen
Edgars shrinks to grow profits, says boss
Edgars has cut more than 100 000m² from its national footprint in a bid to restore profitability, a move chief executive Norman Drieselmann says is reshaping the retailer after years of inherited structural problems.
1 mins
November 26, 2025
The Citizen
King Peles an ‘improved' horse
CONFIDENCE: TRAINER VAN ZYL BELIEVES HIS CHARGE HAS MATURED AHEAD OF SUMMER CUP
2 mins
November 26, 2025
The Citizen
Boks are truly a dream team
Such has the Springboks' dominance been over the past year, it comes as no surprise that six South African players have been included in World Rugby's Dream Team of 2025.
1 min
November 26, 2025
The Citizen
Cyril orders probe into misconduct at tourism
President Cyril Ramaphosa has issued a proclamation authorising the Special Investigating Unit (SIU) to investigate allegations of serious maladministration and improper conduct at SA Tourism (SAT).
1 min
November 26, 2025
The Citizen
Black Friday set to surge
DATA: LOW INFLATION, STRONGER RAND, RISING SALARIES FUEL OPTIMISM
2 mins
November 26, 2025
The Citizen
Scopa poised to charge RAF CEO
DEADLINE: AXE WILL FALL IF THERE IS ANOTHER NO-SHOW >>> Letsoalo subpoenaed to testify in inquiry into agency's operations.
1 mins
November 26, 2025
The Citizen
Better the devil you know
DEPARTURE: ANC TAKEN OFF GUARD BY RAMAPHOSA'S APPARENT INTENTION TO WALK
3 mins
November 26, 2025
Listen
Translate
Change font size