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According to investment analysts South Africans will likely have to brace for another interest rate increase later this week, as the South African Reserve Bank (SARB) holds its Monetary Policy Committee (MPC) meeting, with a rate announcement expected on Thursday (25 May).
For most homeowners in South Africa, the possibility of another interest rate hike can be intimidating. For most homeowners in South Africa, the possibility of another interest rate hike can be intimidating. In an article by Accenture Africa, it was recorded that household debt in South Africa had since 2006 exceeded 65%.
The rise in interest rates, rolling loadshedding, increasing costs of petrol, food, among others, have put a strain on the disposable income of South African households.
“Home insurance is very seldom an optional extra in South Africa. Owning a home comes with risks, and to get a home loan the banks insist you have adequate cover on the property. So, you need to ensure your home insurance works for you, and you get the most value out of it,” said Attie Blaauw, Santam’s Head of Personal Lines Underwriting.
“It’s crucial to consider the cover provided by each policy. While a cheaper premium may sound appealing, you will need to be sure that the policy adequately covers your home and valuable possessions. After all, true peace of mind comes from having the right protection,” he added.
Blaauw shares tips on how best to find affordable home and personal lines insurance and how to maximise it – to reduce the interest rate impact on your budget.