Prime rate rises to 10,75%: what it means for your bond
Figures for the 2026/27 tax year. Prime rate checked 2 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
On 25 September 2026 the prime lending rate rose from 10,5% to 10,75%, after the Reserve Bank raised the repo rate to 7,25%. Here's what that means for your bond.
Your new repayment
| Bond | At 10,5% | At 10,75% | Change per month | Change per year |
|---|---|---|---|---|
| R 750 000 | R 7 488 | R 7 614 | +R 126 | +R 1 516 |
| R 1 000 000 | R 9 984 | R 10 152 | +R 168 | +R 2 022 |
| R 1 500 000 | R 14 976 | R 15 228 | +R 253 | +R 3 033 |
| R 2 000 000 | R 19 968 | R 20 305 | +R 337 | +R 4 044 |
| R 3 000 000 | R 29 951 | R 30 457 | +R 505 | +R 6 066 |
20-year bond at prime. If your rate is prime plus or minus a margin, the rand change is almost the same.
When your repayment changes
Most South African home loans have a variable rate linked to prime, so the new rate applies from the effective date and your bank adjusts your debit order, usually from the next month. If you have a fixed-rate bond, nothing changes until the fixed period ends.
Ways to soften the increase
If the higher repayment is tight, ask your bank whether you can extend the term, but know that this adds a lot of interest. If you've paid extra into your bond in the past, you may be able to use that buffer. Cutting other debt first, especially store cards and personal loans, often frees more cash than the rate increase costs.
The bigger picture
Since 31 January 2025, prime has moved from 11,25% to 10,75%. On a R 1 500 000 bond, that's −R 510 a month. See the full prime rate history.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
Work out your own repayment