The South African Reserve Bank (SARB) has decided to maintain its repo rate at 7.0%, which means the prime lending rate remains steady at 10.5%. This decision brings a sense of relief to homeowners with variable-rate mortgages, as any potential increase in monthly repayments is avoided.
For a R2 million home loan taken over 20 years, the current prime rate translates to a monthly repayment of R19,968. By keeping the interest rates unchanged, borrowers sidestep an estimated R335 rise in monthly payments that would have resulted from a 25-basis-point hike.
Across the entire 20-year loan period, homeowners are expected to repay approximately R4.79 million, inclusive of both the principal loan amount and the interest charges. This stability in interest rates helps borrowers manage their financial commitments more predictably.
The decision by the SARB’s Monetary Policy Committee was not unanimous, with a close 4-2 vote. While four members favored holding the rates steady, two members advocated for a 25-basis-point increase, citing concerns over inflation. The next interest rate decision by the SARB is slated for 23 September 2026, as the committee continues to monitor economic conditions closely.