What is the current home loan interest rate?

As of July, 2026, the prime lending rate is 10.50%. This follows the South African Reserve Bank’s first interest rate hike in years, announced on May 28, 2026, where the repo rate was increased by 25 basis points from 6.75% 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%.
• November 20, 2025: 10.50% to 10.25%

However, on May 28, 2026, the prime rate was increased from 10.25% to 10.50%.

Even with the recent rate hike, this represents a total reduction of 1.25% since September 2024.

What this means for you:

For a typical R550,000 home loan, you’ll save approximately R469 per month compared to September 2024 rates. That’s over R5,000 per year in reduced repayments.

With rates remaining moderate and potential for cuts in the near future, now is still an exceptional time to buy property or refinance your existing bond.