29/05/2026
The South African Reserve Bank’s Monetary Policy Committee has increased the repo rate by 25 basis points. While the increase is moderate, it does have a direct impact on homeowners with bonds, as well as buyers currently trying to qualify for home finance.
For homeowners, a higher interest rate means a higher monthly bond repayment. As a guide, on a bond of R1 million over 20 years, a 25 basis point increase can add roughly R165 to R170 per month to the repayment. On a R2 million bond, the increase is closer to R330 to R340 per month. For many households already dealing with rising living costs, this adds further pressure to monthly budgets.
The decision by the MPC was not taken in isolation. South African consumers are facing a combination of macroeconomic pressures, including rising electricity tariffs, higher fuel costs, food price pressure, global uncertainty, and the ongoing need to keep inflation under control. These factors influence the cost of living and affect how much disposable income households have available.
For buyers, the biggest challenge is affordability. When interest rates increase, the same monthly repayment qualifies a buyer for a slightly lower bond amount. This means buyers may need to adjust their expectations, increase their deposits, reduce other debt, or look at properties within a more comfortable price range.
That said, the property market remains resilient. Well-priced homes in good areas are still attracting serious buyer interest, and financial institutions continue to show a healthy appetite for lending to qualified buyers.