Bigger deposits mean a smaller loan and a better interest rate
RISING INFLATION and several interest rate hikes have many South Africans trying their best to keep their costs down where possible, and this has also translated in their homebuying behaviour.
The Q2 ’22 oobarometer statistics released by ooba reveal lower-than-expected home price inflation from the last quarter. This has resulted in property becoming more affordable in certain regions (in real terms, i.e. after the effects of inflation are stripped out), enabling homebuyers to put down larger deposits.
However, it’s interesting to compare buying behaviour across the various regions, and to identify areas where homebuyers are prioritising deposits.
Deposits are a great way to reduce the size of one’s monthly and total home loan repayments, and to negotiate a better interest rate from the banks. While the oobarometer only observed a 0.4% growth in the price of property quarter-on-quarter, the average size of deposits experienced a 16.4% increase…
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