What does the term repo rate mean?

The repo rate is the interest rate at which the South African Reserve Bank (SARB) lends money to commercial banks. It’s the foundation that determines what you’ll pay for your home loan —when the repo rate moves, your monthly repayments follow.

How it affects your home loan:

Banks lend at the prime lending rate, which is the repo rate plus 3.50%. This directly affects your home loan interest rate.

Current rates (January, 2026):

• Repo rate: 6.75%.
• Prime lending rate: 10.25%.

Recent rate changes

The SARB has delivered six consecutive rate cuts since September 2024:

• September 2024: Prime dropped from 11.75% to 11.50%.
• November 2024: Prime reduced to 11.25%.
• January 2025: Prime lowered to 11.00%.
• May 2025: Prime cut to 10.75%.
• July 31, 2025: Prime cut to  10.50%.
• November 20, 2025: Prime now at 10.25%

That’s a cumulative reduction of 1.50% since September 2024, which are the lowest rates since the COVID-19 pandemic.

What this means for you

Lower repo rates mean:

• Possibly reduced monthly repayments on existing variable rate bonds.
• Better affordability for first-time buyers.
• Improved qualification prospects with enhanced buying power.

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