Home › SA Prime Rate › How the Prime Rate Affects You...

How the Prime Rate Affects Your Home Loan in South Africa

Every rate change hits your bond repayment immediately. Here is exactly how much each 0.25% move costs or saves you across different loan sizes.

The Rule of Thumb

R500k bond · 0.25% move

R80/mo

R1M bond · 0.25% move

R159/mo

R2M bond · 0.25% move

R318/mo

Monthly Repayment by Rate — 20-Year Term

Loan Amount	9.75%	10.00%	10.25% ✓	10.50%	11.00%
R500,000	R4,767	R4,847	R4,926	R5,006	R5,167
R750,000	R7,151	R7,270	R7,389	R7,509	R7,751
R1,000,000	R9,534	R9,693	R9,852	R10,011	R10,334
R1,500,000	R14,301	R14,540	R14,778	R15,017	R15,501
R2,000,000	R19,068	R19,386	R19,704	R20,022	R20,668
R3,000,000	R28,602	R29,079	R29,556	R30,033	R31,002

How the Prime Rate Affects Variable Home Loans

In South Africa, almost all home loans are variable rate — meaning your monthly repayment changes automatically whenever the SARB adjusts the prime rate. Unlike fixed-rate markets like the USA or UK, South African homeowners carry the full interest rate risk on their bonds.

Every 0.25% change in the prime rate changes your monthly repayment by approximately R159 per R1 million borrowed over a 20-year term. Three cuts of 0.25% since September 2024 have therefore saved a R1 million bond holder approximately R477 per month compared to the peak rate.

The current prime rate of 10.25% is still historically elevated. The long-run average for SA prime is closer to 9%–10%, suggesting further relief may come if inflation continues to moderate. Use our home loan calculator to model different rate scenarios for your specific bond.

Disclaimer: Repayment figures are estimates based on prime rate of 10.25% and a 20-year term. Actual repayments depend on your specific loan terms. Source: SARB MPC statements April 2026.

Related Tools & Guides

Home Loan Calculator Loan Affordability Prime Rate Full Guide Current Prime Rate Rate History