Banks and homeowners feel pinch of higher interest
Arrears and defaults on the rise as consumers battle to make monthly bond payments
21 August 2023 - 19:56
Homeowners under financial pressure are being forced to sell their properties or restructure loans with bond repayments rising as much as 40% since 2021 due to rising interest rates.
Since November 2021, the Reserve Bank has raised the repo rate by 475 basis points to 8.25% to contain inflation. While warning that the hiking cycle was not necessarily at its end, the Bank kept rates on hold in July...
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