24/09/2026
The prime lending rate has increased from 10.50% to 10.75%.
As property practitioners, though, simply sharing the new rate with clients doesn't add much value.
The more useful conversation is around why rates went up, what the increase actually means, and how we put it into perspective for buyers and sellers.
Why did the Reserve Bank increase rates? Fuel is a big part of the story.
The Reserve Bank says renewed pressure on oil and fuel prices has pushed up its near-term inflation forecasts. But its concern isn't only about the price of petrol.
The MPC specifically warned about the risk of "second-round effects". In simple terms, if a price shock is large and lasts long enough, it can start filtering through into transport, goods, services, wages and inflation expectations.
The Reserve Bank is trying to prevent today's price shock from becoming tomorrow's more widespread inflation.
That's why the MPC voted unanimously to increase the repo rate by 25 basis points.
Putting 0.25% into perspective.
For a buyer taking a 20-year bond at prime, the approximate additional monthly repayment is:
R1 million: +R165
R2 million: +R330
R3 million: +R500
R4 million: +R660
R5 million: +R830
The figures are approximate and will differ according to the actual interest rate, loan balance and term.
So, what are we saying to clients?
For buyers, I don't think the message should be "property just became unaffordable". We will help you work with the actual numbers. For some buyers the increase will affect affordability, while for others the difference may be manageable.
For sellers, today's announcement makes realistic pricing even more important. When affordability is under pressure, buyers become increasingly conscious of the total monthly cost of ownership and how one property compares with another.
And for existing homeowners, perspective matters. A rate increase isn't welcome, but translating 0.25% into an actual rand amount is far more useful than simply repeating the headline.
There was also an interesting forward-looking point in today's announcement.
The Reserve Bank's current model shows rates broadly stable for the remainder of this year, with cuts later in the forecast as inflation moves back towards 3%.
That certainly isn't a promise. The SARB was very clear that future decisions remain meeting-by-meeting and dependent on the data and risks at the time.
Our clients don't need us to repeat headlines they can find on Google.
They need us to help them understand what those headlines mean for their property decisions.
https://www.nightingalerealestate.co.za