The prime lending rate is the SARB (South African Reserve Bank) repo rate plus 3.5%. As of early 2025, the SARB repo rate is 7.5%, making prime 11.00%. Home loan rates are typically expressed as prime ± a margin based on your credit profile.

Banks calculate your personalised rate based on: loan-to-value ratio (LTV) — the loan as a percentage of the property value; credit score and payment history; income stability and employment type; existing liabilities and net disposable income; and the loan term requested.

Yes. Using a bond originator to apply to multiple banks creates competition that enables rate negotiation. A 0.5% rate reduction on a R2 million loan over 20 years saves approximately R150,000 in total interest. Improving your credit score before applying also improves your rate.

Variable rates are generally better in falling rate environments as you benefit from SARB rate cuts. Fixed rates provide certainty in rising rate cycles. Most South African home buyers use variable rates — only about 10–15% fix their rates.

Yes. You can refinance your bond by switching to another bank or negotiating a rate reduction with your existing bank. Refinancing makes sense when the rate saving exceeds switching costs (bond registration and attorney fees). Use the bond calculator to model the break-even.