PRIME LENDING RATE
10.25%
Effective 20 November 2025
SARB REPO RATE
6.75%
Prime = Repo + 3.50%
CHANGE FROM 2024 PEAK
−1.50%
Six cuts since Sep 2024
NEXT MPC MEETING
May 2026
Rate held at Mar 2026 meeting
⚠ Rate held in March 2026. The SARB held the repo rate unchanged at 6.75% at its 26 March 2026 MPC meeting, citing upside risks to inflation from the Middle East conflict and rising fuel prices. Inflation is expected to rise to around 4% in Q2 2026 before easing. The next MPC meeting is scheduled for May 2026.

How the rate affects your bond

See the monthly rand impact of rate changes on your home loan

R
At current prime (10.25%)R 0
At 2024 peak (11.75%)R 0
Monthly saving vs 2024 peakR 0
If prime drops to 9.75%R 0
Additional monthly savingR 0

Monthly payment calculated on a 20-year term at each rate scenario.

SA prime rate history — 2020 to 2026

Date effective Repo rate Prime rate Change SARB decision
20 Nov 20256.75%10.25%−0.25%Cut — improved inflation outlook
31 Jul 20257.00%10.50%−0.25%Cut — continued easing cycle
29 May 20257.25%10.75%−0.25%Cut — inflation within target
30 Jan 20257.50%11.00%−0.25%Cut — 3rd consecutive reduction
21 Nov 20247.75%11.25%−0.25%Cut — start of easing cycle
19 Sep 20248.00%11.50%−0.25%Cut — first cut since 2020
25 May 20238.25%11.75%+0.50%Hike — fighting persistent inflation
30 Mar 20237.75%11.25%+0.50%Hike
26 Jan 20237.25%10.75%+0.25%Hike
24 Nov 20227.00%10.50%+0.75%Hike
22 Sep 20226.25%9.75%+0.75%Hike
21 Jul 20225.50%9.00%+0.75%Hike
19 May 20224.75%8.25%+0.50%Hike
24 Mar 20224.25%7.75%+0.25%Hike — start of tightening cycle
27 Jan 20224.00%7.50%+0.25%Hike
23 Nov 20213.75%7.25%+0.25%Hike — first since pandemic
22 Apr 20203.75%7.25%−1.00%Emergency cut — COVID-19
15 Apr 20204.75%8.25%−1.00%Emergency cut — COVID-19
20 Mar 20205.75%9.25%−1.00%Emergency cut — COVID-19

Source: South African Reserve Bank (SARB). Prime = Repo + 3.50%. Older history available from SARB.co.za.

What is the prime rate and how does it affect your bond?

Repo rate vs prime rate

The repo rate is what the SARB charges commercial banks. The prime rate is repo + 3.50% — this is the benchmark home loan rate. Your bank offers you prime minus X% to prime plus Y% depending on your credit score and deposit size.

How your bond rate is set

SA home loans are variable rate by default — they track prime. If you're at prime (10.25%), a 0.25% cut reduces your rate immediately next month. You can sometimes negotiate a fixed rate, but SA banks rarely offer these beyond 2–3 years.

When does the SARB meet?

The MPC meets approximately every 6 weeks — six times per year. Meetings are typically in January, March, May, July, September, and November. Rate decisions are announced at the end of the second day of the two-day meeting.

What to do when rates change

When prime drops, keep paying your original instalment. The extra goes to principal and saves you years of interest. Use our Extra Payments Calculator to see the impact.

Calculate my bond at current rate →