Cost of living crisis | Households buckle under home loan pressures

JOHANNESBURG – There is a cost of living crisis in South Africa which many feel is getting worse.
The Ukraine war has forced central banks to tame inflation by aggressively increasing interest rates.
This has been the case in South Africa as well.
The repo rate is currently at 8.25 percent while the prime lending rate is sitting uncomfortably high at 11.75 percent.
READ: Repo rate to remain unchanged at 8.25%
Consumers are paying significantly more on their home loans.
At the same time they are dealing with stubbornly high inflation amid several macroeconomic factors.
As a result of the increased pressure, more have been defaulting on bond repayments.
Other consumers have stopped paying entirely.