If your bond payment is about to creep up, you’re not imagining it. On 23 September 2026, the South African Reserve Bank raised the repo rate by 0.25 percentage points, from 7% to 7.25%. All six members of its Monetary Policy Committee voted for the increase.
What changed?
Banks base their home loan rates on the prime lending rate, which moves whenever the repo rate does. Prime went from 10.5% to 10.75%, and the new rates took effect on 25 September 2026.
This is the second increase this year. The first was in May, which means prime has gone up from 10.25% to 10.75% in 2026.
Why did it happen?
The Reserve Bank pointed to rising inflation risks. Inflation was 4.4% in August, which is above the bank’s target of 3%. The Governor, Lesetja Kganyago, said that a few months ago it seemed the fuel price shock might be easing, but it has now intensified. He also said interest rates are rising globally. Ongoing tension in the Middle East, which disrupts oil supplies, was part of the picture too.
What does it mean for your monthly payment?
It depends on the type of bond you have.
If your bond rate moves with prime (most home loans do), your monthly payment will go up. The bigger your bond, the bigger the increase you’ll feel. Because there have been two increases this year, the extra cost has been building up.
If you have a fixed-rate bond, your payment won’t change until the fixed period ends.
The exact amount depends on your bond size, your interest rate and how long you have left to pay. The easiest way to find out is to check your latest bond statement, or ask your bank to confirm your new monthly payment.
What does it mean for buyers?
Higher rates mean smaller loans. Banks look at what you can afford each month, so a higher rate can reduce the amount you qualify for. Property lawyers STBB say rate hikes can lead to slightly lower demand from buyers.
What can you do?
1. Check your actual numbers. Look at your latest bond statement to see your rate and your new payment.
2. Talk to your bank. Ask whether you can get a better rate. A bond originator can also compare offers from different banks for you.
3. Pay a little extra if you can. Even a small extra amount each month reduces the interest you pay over time.
4. Plan your budget. Check whether you can cover the higher payment without stress.
What happens next?
The Reserve Bank’s forecasts currently show the repo rate staying roughly the same for the rest of this year. However, that is only a guide, and the rate could still move if inflation or fuel prices change. The next decision is on 19 November 2026.
This article is general information and not financial advice. Speak to your bank or a financial adviser about your own situation.
