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If an estate agent phones you up with "it& #39;s a great time to buy a house!" or the bank offers to extend your credit card limit. Hang up. https://twitter.com/SAReserveBank/status/1249981605491458048">https://twitter.com/SAReserve...
Qualifying and affordability are completely different concepts.
"Congrats, Mr. Mkhize you QUALIFY for a R2m home loan"
This doesn& #39;t mean Mr. Mkhize can AFFORD all the costs of a house.
It means the bank has run a credit model and they believe he can service their debt.
"Congrats, Mr. Mkhize you QUALIFY for a R2m home loan"
This doesn& #39;t mean Mr. Mkhize can AFFORD all the costs of a house.
It means the bank has run a credit model and they believe he can service their debt.
The repo & prime rates are dynamic. Essentially a rates cut will offer short term relief for borrowers.
Your mortgage is typically 20yrs. Will the repo rate stay this low? No.
If you barely qualify to own a property at this point in the cycle, you actually can& #39;t afford it.
Your mortgage is typically 20yrs. Will the repo rate stay this low? No.
If you barely qualify to own a property at this point in the cycle, you actually can& #39;t afford it.
When there& #39;s a rates cut, banks are inherently incentivised to extend their loan book to generate the same quantum of earnings.
"Congrats! You qualify for an extra R50k on your credit card!".
Translated: "We need to make more money off you. Go ahead & spend this for us"
"Congrats! You qualify for an extra R50k on your credit card!".
Translated: "We need to make more money off you. Go ahead & spend this for us"
