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Home loan interest rates: What your bond will cost in 2024

Good news for homebuyers as September 2023 saw the SARB opt to leave the interest rate unchanged, indicating that recent hikes may be coming to an end.

Home Loan Interest Rates

Article summary

  • The interest rate on your home loan is affected by the repo rate, which is determined by the South African Reserve Bank.
  • Experts predicted in 2023 that interest rate hikes would be halted and perhaps even reversed. This prediction was strengthened in September 2023 when the SARB opted to keep the interest rate the same.
  • A home loan comparison service can get you lower interest rates by submitting your home loan application to multiple banks, allowing you to compare deals.

The interest rate on a home loan will vary depending on what the bank is willing to offer, and how much of a risk they consider you to be.

But aside from your financial situation, a significant factor affecting interest rates is the repo rate, which is determined by the South African Reserve Bank. The repo rate refers to the rate at which the SARB will lend to commercial banks.

The repo rate in turn determines the prime lending rate, which is the repo rate plus what the banks add on to make a profit.

What is the current prime lending rate?

As of February 2024, the interest rate is 11.75%.

The past couple of years saw several rate hikes as the South African Reserve Bank sought to combat inflation.

However, experts predict that the hikes are at an end and may even begin to reverse. 

This prediction seems likely to be correct as September 2023 saw the SARB forego any interest rate hikes, keeping the rate at its current 11.75%.

Other factors that affect interest rates

As well as the prime interest rate, your financial situation will affect the interest rate that the bank charges on your home loan.

Your credit record

The most significant factor is your credit record, which is affected by things such as your level of debt, and how timeously you pay your bills.

You need a minimum credit record of 610+ to have a chance of home loan approval.

Anything above 670 is considered an excellent credit score, and is likely to earn you lower interest rates.

Your deposit

The size of your deposit will also affect your interest rates. The higher the deposit, the less risk to the bank, and therefore lower monthly repayments and interest rates.

Using a home loan comparison service

One of the most effective ways to achieve lower interest rates is to use a home loan comparison service such as ooba Home Loans.

We submit your home loan application to multiple banks, and since different banks offer different packages, some of the banks may offer lower interest rates than others.

So we allow you to compare deals offered by the banks and choose the one with the most favourable interest rates.

Our recommendation: Get prequalified

Prequalification will analyse your credit score and provide you with an estimation of what you can afford on your home loan. Useful information that will also make the seller more likely to accept your offer, as they’ll be more confident you can obtain the required funds (providing you’re purchasing a home within your prequalified price range).

Get prequalified for a home loan today

DIY with our online prequalification tool, or speak to an expert.


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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

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Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

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Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

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