23/09/2026
Prime Lending Rate Increases to 10.75% – What Does This Mean for Property Owners, Buyers and Investors?
The South African Reserve Bank has increased the policy rate by 25 basis points, moving the repo rate from 7.00% to 7.25%.
As a result, the prime lending rate increases from 10.50% to 10.75%, effective from 25 September 2026.
So why the increase?
The main reason is renewed inflation pressure.
Global fuel prices have increased, geopolitical tensions continue to place pressure on energy and food costs, and the Reserve Bank remains focused on keeping inflation under control and moving it sustainably towards its 3% target.
For homeowners with variable-rate bonds, this means monthly repayments will increase slightly.
For buyers, affordability becomes even more important. It is essential to understand not only the purchase price, but also your bond repayment, levies, rates, insurance, transfer costs and ongoing monthly expenses.
Higher interest rates do not necessarily mean it is a bad time to buy.
In some areas, fewer competing buyers can create better negotiating opportunities for serious purchasers who already have finance in place.
For property investors, this is where the numbers really matter.
An investment property should be assessed based on the full picture:
Purchase price
Bond repayment
Expected rental income
Levies
Rates
Management fees
Maintenance
Vacancy risk
Long-term growth potential
Higher borrowing costs can also result in more people remaining in the rental market for longer, which may support rental demand in well-located areas.
It is also important to remember that this increase does not automatically mean we are entering a long cycle of rate hikes.
The Reserve Bank has indicated that interest rates could remain relatively stable in the short term, with future decisions dependent on inflation, fuel prices, the rand and global economic conditions.
The property market is influenced by far more than interest rates alone.
Location, supply and demand, rental demand, affordability and purchasing at the correct price remain some of the most important factors.
At Team Häus, we believe property decisions should be based on market knowledge, realistic numbers and a clear investment strategy.
Whether you are buying your first home, selling, expanding your investment portfolio or reviewing the performance of an existing property, understanding the numbers remains key.
Thinking of buying or investing?
Speak to Team Häus before making your next move.
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