What is the current home loan interest rate?

As of August 1, 2025, the prime lending rate is 10.50%. This follows the South African Reserve Bank’s fifth consecutive interest rate cut announced on July 31, 2025, where the repo rate was reduced by 25 basis points from 7.25% to 7.00%.

Recent rate cuts:

The prime rate has dropped significantly since September 2024:

• September 2024: 11.75% to 11.50%.
• November 2024: 11.50% to 11.25%.
• January 2025: 11.25% to 11.00%.
• May 2025: 11.00% to 10.75%.
• July 31, 2025: 10.75% to 10.50%.

This represents a total reduction of 1.25% since September 2024 – the lowest rates since the COVID-19 pandemic.

What this means for you:

For a typical R550,000 home loan, you’ll save approximately R415 per month compared to September 2024 rates. That’s nearly R5,000 per year in reduced repayments.

With rates at historic lows and potential for further cuts, now is an exceptional time to buy property or refinance your existing bond.