28/09/2026
📈 INTEREST RATE UPDATE: WHAT DOES THE 25 BASIS-POINT HIKE MEAN FOR YOU?
South Africa’s interest rates have increased by 25 basis points, taking the Prime Lending Rate to 10.75% and the Repo Rate to 7.25%, effective 25 September 2026.
But what does this actually mean for you as a homeowner, buyer or investor?
🏠 HOMEOWNERS:
If your home loan is linked to the prime rate, your monthly repayment will increase. For example, a R3 million home loan over 20 years could increase by approximately R505 per month.
🚗 VEHICLE FINANCE:
A R500,000 vehicle loan over 6 years could cost approximately R64 more per month following the increase.
💳 OTHER VARIABLE-RATE DEBT:
Personal loans and other credit linked to the prime rate can also become more expensive.
🏡 WHAT DOES THIS MEAN FOR PROPERTY BUYERS?
A higher interest rate means affordability becomes even more important. Before making an offer, buyers should understand their monthly repayment, deposit, transfer costs and overall affordability not just the purchase price.
For sellers, it also reinforces the importance of realistic market pricing. Buyers are watching their monthly budgets closely.
The numbers matter. Before you sign, know what the numbers mean for YOU.
If you're considering buying, selling or simply want to understand how the current market affects your property plans, let's have a conversation.
Kenny Çentillionaire Dipale
Senior Property Practitioner | Harcourts Rhino
📞 Call / WhatsApp: 083 966 1326
📧 [email protected]
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