Here’s how much MORE you’ll pay on your bond next month

The South African Reserve Bank (SARB) has hiked interest rates by 25 basis points, dealing a blow for homeowners with variable-rate home loans.

Following Wednesday’s Monetary Policy Committee (MPC) meeting, the repo rate now stands at 7.25%, while the prime lending rate is 10.75%.

For anyone financing a R2 million property over 20 years at prime, that means monthly repayments now stand at over R20 000.

Monthly repayments on a R2 million bond

Based on a 20-year home loan at the new prime lending rate of 10.75%, the monthly repayments on a R2 million bond are:

• Bond amount: R2 000 000
• Interest rate: 10.75% (prime)
• Loan term: 20 years / 240 months
• Monthly repayment: R20 305

What’s the actual increase?

That means an extra R337 per month or R4 044 per year or around R80 880 over the full 20-year period.

Scary stat, but if you pay the required monthly repayment every month – no more, no less – over the course of 20 years you will have paid a total of R4 873 099.

That’s R2 873 099 more than the initial R2 million bond you took out!

Other bond repayment examples

At the new prime lending rate of 10.75%, monthly repayments over 20 years are:

Bond amount	Old	New	Change
R1 million	R9 984	R10 152	R168
R1.5 million	R14 976	R15 228	R252
R2 million	R19 968	R20 305	R337
R2.5 million	R24 960	R25 381	R421
R3 million	R29 951	R30 457	R506

The Monetary Policy Committee (MPC) voted unanimously for the increase as renewed fuel-price pressures threaten to push inflation higher, while economic growth remains weak.

SARB Governor Lesetja Kganyago said the global economy was showing increasing vulnerabilities following the energy shocks of 2026.

Next interest rate decision

The SARB’s next MPC meeting will take place on Thursday, 19 November, which will be the final interest-rate decision of 2026.

Dates and outcomes of SARB MPC meetings in 2026

Month	Date	Outcome
January	29 January	No change
March	26 March	No change
May	28 May	25 bps hike
July	23 July	No change
September	23 September	25 bps hike
November	19 November	TBA