The prime rate in South Africa today, and what it means for your bond
The short answer
Contents
What is the prime rate in South Africa today?
Prime is 10.75% from 25 September 2026, and the South African Reserve Bank's repo rate is 7.25%. The Monetary Policy Committee announced the change on 23 September 2026; before it applies, prime is 10.5%.
The repo rate is what the Reserve Bank charges commercial banks. Prime is the rate banks then offer their lowest-risk borrowers, and in South Africa it sits a fixed 3.5 percentage points above repo, so the two always move together. When the MPC moves repo, every variable-rate home loan in the country moves with it, usually from the day after the announcement or the date the Reserve Bank names.
What the latest change does to your bond repayment
Most bonds are variable, so the change reaches existing home loans as well as new ones. This is the monthly repayment on a 20-year bond at prime, before and after the change.
| Bond amount | At 10.5% | At 10.75% | Change a month |
|---|---|---|---|
| R1 000 000 | R9 980 | R10 150 | +R170 |
| R1 500 000 | R14 980 | R15 230 | +R250 |
| R2 000 000 | R19 970 | R20 300 | +R340 |
| R3 000 000 | R29 950 | R30 460 | +R510 |
| R5 000 000 | R49 920 | R50 760 | +R840 |
How much you can borrow at a prime rate of 10.75%
Banks look at affordability, and a common rule is that the bond repayment should stay within about 30% of gross monthly income. On that rule, over 20 years at 10.75%, this is roughly what an income supports, with a 10% deposit on top.
These are indicative. A bank also weighs your credit record, your other debt and its own valuation of the home, and a bond originator can compare offers from several banks at once, which is often how buyers get a rate below prime.
| Gross income a month | Repayment a month | Bond | Home price with 10% down |
|---|---|---|---|
| R25 000 | R7 500 | R739 000 | R821 000 |
| R40 000 | R12 000 | R1 182 000 | R1 313 000 |
| R60 000 | R18 000 | R1 773 000 | R1 970 000 |
| R80 000 | R24 000 | R2 364 000 | R2 627 000 |
| R120 000 | R36 000 | R3 546 000 | R3 940 000 |
What the change means if you are selling
When rates rise, the same monthly repayment buys a smaller bond. At 10.75% instead of 10.5%, a buyer paying the same instalment can borrow about 1.7% less. For a home priced at R3 000 000, that is around R50 000 of buying power gone for a buyer who was stretching to reach it.
That does not mean prices fall by the same amount. It means the buyer at the top of their range feels it first, so a realistic asking price, backed by recent sales on your street, matters more after a hike. Selling without agent commission also leaves room to meet a buyer without losing money on the deal.
Why your bank's rate may be different from prime
- Banks price each borrower individually: a strong credit record, a deposit or a good income can earn a rate below prime, and a thinner profile can mean prime plus a margin.
- The margin you agree is fixed for the life of the bond, so a hike or a cut moves your rate by the same amount prime moves.
- A fixed-rate bond, where a bank offers one, does not move with prime for the fixed period, usually at a higher starting rate.
- Pre-approval shows what a bank will actually offer you before you make an offer on a home.
When does the prime rate change next?
The MPC meets six times a year. The next announcement is on 19 November 2026. Privately.co.za updates its bond calculator, this guide and every buyer's budget figures when a change applies, and buyers who have told us their budget get a note in the app showing what it means for them in rand a month.
Common questions
- What is the prime lending rate in South Africa right now?
- Prime is 10.75% from 25 September 2026. It is set 3.5 percentage points above the Reserve Bank's repo rate, which is 7.25%.
- What is the difference between the repo rate and the prime rate?
- The repo rate is what the Reserve Bank charges the commercial banks. Prime is what the banks charge their lowest-risk customers, and in South Africa it is always the repo rate plus 3.5 percentage points.
- Does a rate change affect my existing bond?
- Yes, if your bond is on a variable rate, which most South African bonds are. Your rate moves by the same amount as prime, from the date the change applies, and the bank adjusts your debit order to match.
- How much more will I pay on a R1 000 000 bond?
- About R170 a month more over 20 years, going from 10.5% to 10.75%. Scale it for your own bond: R2 000 000 is roughly double.
- How often does the Reserve Bank change the repo rate?
- The Monetary Policy Committee meets six times a year and may raise, cut or hold the rate at each meeting. The next announcement is on 19 November 2026.
Sources
Every figure on this page traces to one of these.