The current Repo Rate (+ 5 things you should know)

Article summary

• The Repo Rate affects the interest rate at which your bank will lend, which in turn affects the cost of your home loan.
• The Repo Rate was cut from 8.25% to 8.00 in September 2024; the first cut in several years.
• This was followed by a succession of cuts, with the latest in November 2025 reducing the rate to 6.75% (as of January 2026).
• A January 2026 meeting left the Repo Rate untouched.
• Experts believe more cuts to the Repo Rate are on the horizon.

If you’re applying for a home loan, the Repo Rate is one of the most important factors to take into account. Here’s what you need to know about the Repo Rate and how it will affect your home loan.

What is the South African Repo Rate

The current Repo Rate is 6.75% (as of January 2026).

This makes the Prime Interest Rate 10.25%

The recent Repo Rate cuts 

Over the past couple of years, the SARB has been persistently increasing interest rates in order to combat inflation.

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%.

Latest January 29, 2026: Rate left untouched.

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

Note: There may be uncertainty regarding interest rates, but there doesn’t have to be uncertainty regarding your bond payments. Use our Bond Repayment Calculator to determine what you will owe on bond repayments per month. While it doesn’t deliver 100% accuracy, it provides a solid estimate that can help you budget effectively.

What does this mean for homebuyers?

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 current lows, now could be an exceptional time to buy property or refinance your existing bond.

How much will you save on home loan repayments?

Cuts can result in significant long-term savings.

When you take into account that the interest rate was 11.75% for most of 2024, the recent cuts make 2025 a year for potentially substantial savings.

Here’s what you could save on a home loan in 2026 versus the 2024 interest rate (assuming a 20-year term and 10% deposit).

The cumulative impact for homeowners:

The interest rate cuts mean significant potential savings, as recorded below:

Home loan value	Monthly repayment at 11.75%	Monthly repayment at 10.25%	Monthly savings	3-year savings
R1 million	R9 753	R9 037	R822	R29 592
R2 million	R19 507	R18 074	R1 644	R59 184
R3 million	R29 260	R27 111	R2 466	R88 776
R4 million	R39 013	R36 148	R3 288	R118 368
R5 million	R48 767	R45 185	R4 110	R147 960

5 Things you should know about the Repo Rate:

1. The prime lending rate will always be higher than the Repo Rate

• The Repo Rate, is the rate at which the South African Reserve Bank lends to commercial banks. 
• Banks lend at a rate that is slightly higher than the Repo Rate to cover their basic profit margin. This is known as the prime lending rate. 

2. The Repo Rate affects your home loan

• As mentioned, the Repo Rate affects the prime interest rate, which in turn affects the interest rate of your home loan. 
• The interest rate is what you have to pay over and above the amount you pay monthly to the bank in order to repay your home loan.

3. How long will the Repo Rate remain at the current level?

• The Repo Rate was cut recently, and more cuts are expected. 

4. A fixed-rate home loan remains at the same interest rate regardless of the Repo Rate (for an agreed-upon period)

• When your bond is registered, you can choose to have a fixed-rate or variable-rate loan.
• Under a fixed-rate home loan, you keep paying the same home loan repayment amount monthly, regardless of fluctuations in the market, for an initial agreed period.
• However, fixed interest rates expire after the initial agreed period, after which you will either have to revert to variable interest rates or negotiate a new fixed rate with the bank.
• Furthermore, it’s more of a risk for the bank, so they’ll likely charge you a higher rate out of the gate.
• But it does enable you to budget with greater accuracy.

5. A home loan comparison service can help you secure lower interest rates

Regardless of the Repo Rate, a home loan comparison service, such as ooba Home Loans, can secure you lower interest rates by submitting your application to multiple banks.

You can then compare deals and choose one with an interest rate as close to the prime lending rate as possible.

So apply for a home loan with ooba Home Loans and get the best deal on your bond, improving your equity in the long term.

Find out what you can afford: Pre-approval

Regardless of the Repo Rate, it helps to know what you can afford.

Getting pre-approved with ooba Home Loans will provide a solid estimation of what you can afford, taking the current Repo Rate into account.

You can get pre-approved by contacting an expert at ooba Home Loans or by using our free, online pre-approval tool, the Bond Indicator.