On 23 September 2026, the South African Reserve Bank's Monetary Policy Committee raised the repo rate by 25 basis points to 7.25%, effective 25 September 2026, lifting the prime lending rate to 10.75%. On a R1,500,000 bond that's roughly R 252 more a month; on a R3,000,000 bond, about R 506 more — figures confirmed below, not estimated.
Short answer
- Repo rate: 7.25% (up from 7.00%), decided 23 September, effective 25 September 2026
- Prime lending rate: 10.75% (up from 10.50%)
- R1,000,000 bond: +R 168/month
- R2,000,000 bond: +R 337/month
- R3,000,000 bond: +R 506/month
- Next MPC decision: 19 November 2026
Why did the SARB raise rates again?
The MPC voted unanimously to hike, citing an intensifying fuel-price shock and rising global interest rates. Governor Lesetja Kganyago said the Bank expects headline inflation to climb above 5% later in 2026 and into early 2027 before easing back toward the 3% target as the fuel shock fades. The Bank also revised its 2026 inflation forecast up to 4.4% (from 4.0%) and trimmed its 2026 GDP growth forecast to 1.2% (from 1.4%), while leaving 2027 (1.7%) and 2028 (1.9%) growth forecasts unchanged. This is the second hike this year — the MPC also raised rates 25bps in May 2026 — after cutting to 6.75% in November 2025 alongside the SARB's move to a firm 3% inflation target.
How much more will I pay on my bond?
The table below shows the change at the new 10.75% prime rate versus the previous 10.50%, on a standard 20-year term, before any bank-specific pricing above or below prime:
| Bond value | At 10.50% | At 10.75% | Extra per month |
|---|---|---|---|
| R 850 000 | R 8 486 | R 8 629 | +R 143 |
| R 1 000 000 | R 9 984 | R 10 152 | +R 168 |
| R 1 500 000 | R 14 976 | R 15 228 | +R 252 |
| R 2 000 000 | R 19 968 | R 20 305 | +R 337 |
| R 3 000 000 | R 29 951 | R 30 457 | +R 506 |
| R 4 000 000 | R 39 935 | R 40 609 | +R 674 |
| R 5 000 000 | R 49 919 | R 50 761 | +R 842 |
Source: bond.co.za calculation — 20-year, prime-linked, capital-plus-interest amortisation at 10.50% → 10.75%, independently recalculated and confirmed by Rates & Lender Data, 6 October 2026.
What does this mean for first-time buyers?
Pam Golding Properties flagged first-time buyers as the group most exposed to repayment increases, since they tend to run tighter monthly budgets and have less room to absorb an extra few hundred rand. Seeff Property Group described the hike as added pressure on an already cautious buying market. Neither of these is a reason to assume you won't qualify or that your own deal will move by exactly these amounts — actual pricing depends on your bank, credit profile and the margin above or below prime you negotiate.
What should I watch next?
The next MPC decision is due 19 November 2026. The Bank has signalled that further moves depend on how quickly the current fuel-price-driven inflation spike fades — there's no guarantee of either a hold or another hike. Worth watching alongside it: FNB's House Price Index, which had already cooled from 6.1% y/y growth in March 2026 to 5.1% in July, before this latest hike was even in the data.
Caveats
These repayment figures assume a prime-linked variable-rate bond over a 20-year term, and don't include life insurance, bond or legal fees, or a rate above or below prime that your specific bank may offer. Your own repayment change will depend on your bank, your credit profile, and the margin on your loan. This article is general market information, not financial advice — talk to a bond originator or your bank about your specific numbers.