Home Loan Repayments After the Rate Hike: How Much More Will You Pay?
The September repo rate increase to 7.25% has pushed the prime lending rate to 10.75%, and homeowners with prime-linked bonds will see their monthly repayments rise. Seeff Property Group says the increase pushes prime to its highest level since May 2025, wiping out much of the relief of the past year, and Pam Golding Property says it adds pressure on prospective buyers, especially first-timers. The market itself is still described as strong, but affordability and credit assessments remain key when applying for a bond. The table below shows roughly how much extra you will pay each month, and you can compare NCR-registered lenders on saloansonline.co.za.
| Bond Size | Approx. Extra Cost per Month | Note |
|---|---|---|
| R1 million | About R168 | Prime moves from 10.50% to 10.75% |
| R1.695 million (average SA home price) | About R286 | Based on the latest oobarometer average home price |
| R2 million | About R337 | Roughly double the R1 million figure |
| R3 million | About R500 | Reported estimate |
| R5 million | About R842 | Based on a 20-year term at prime, according to Seeff |
Figures are estimates and depend on your loan term, interest rate and remaining balance. Variable-rate instalments will rise, while fixed-rate arrangements are generally unaffected. Check with your bank for your exact repayment. This article is for information only and is not financial advice.
Sources
- How much more you’ll pay on your bond after the latest interest rate hike (BusinessTech)
- R842 per month pain for homeowners in South Africa (Daily Investor)
- Rate hike hits SA homeowners with higher monthly bond costs (Briefly)
- Interest rate hike hell (EWN)