Joan Muller of the Financial Mail interviewed Paul Esselaar on the emerging practice of banks increasing the mortgage interest rate when a new loan is entered into by a consumer in order to change the loan from being in a juristic person’s name to being into their own name. (It is better from a Capital Gains Tax (CGT) perspective to have a property in your personal name and SARS has provided consumers with a window of opportunity to transfer the property without attracting CGT so that consumers can move the property into their personal name. The problem is that neither SARS nor the consumer could anticipate that the self-same loan would now have a higher interest rate than before).
To view the article from the Financial Mail HERE