28/05/2026
The Wake-Up Call Fam.....🔥CLASS IN SESSION...SHALL WE?
With SARB bumping interest rates 25 basis points to 7% 📈 we need to reevaluate!
?....what does this mean, you ask? Listen,this is why RedeemCRC is here,to aid you because we care! 📱: 073 172 5546
👇🏾
-Your loans just got more expensive.
-Your just got more expensive.
-The people who FIX their CREDIT now are the ones who’ll sleep easy 6 months from now.
- Stop letting 1 bad score cost you R1000s in extra interest.
In Macro economics, a basis point = 0.01 percentage point.
So 25 basis points ≠ 25%.
25 basis points = 0.25 percentage points.
Here's an example, because it's crucial that you comprehend this.
When SARB increased rates by 25 basis points to 7%, that means:
7.00% = 6.75% + 0.25%
Banks use basis points because it’s cleaner than saying “0.25 percentage points” and avoids confusion between a 0.25% increase vs a 25% increase. A 25% increase on 6.75% would be a jump to 8.44% - way bigger! (Hope this makes sense fam)
So,that 0.25% hike adds up fast because INTEREST COMPOUNDS MONTHLY.
Here’s how it hits with real numbers at 7% vs 6.75%:
1. : R1,000,000 over 20 years
- At 6.75%: ~R7,606/month
- At 7.00%: ~R7,753/month
Extra cost: R147/month = R1,764/year = R35,280 over 20 years........Right?!
2. : R300,000 over 6 years / 72 months
- At 6.75%: ~R5,076/month
- At 7.00%: ~R5,109/month
Extra cost: R33/month = R396/year = R2,376 over 6 years.....Right?!
3. : R50,000
- Banks usually charge prime + margin. If your rate goes from 15.75% to 16.00%:
Extra cost: ~R104/month in interest alone.....Right?!
Why it stings more than it looks
Banks recalculate your payment immediately on variable-rate loans like home loans and car loans. So that 0.25% doesn’t just cost you once - it’s every month until the rate drops again.
That’s why matters now. If you’re sitting at a low score, banks already charge you prime + 3-5%. A rate hike on top of that = double pain.
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