Interest Rate Cut - Sandton Debt Counselling Reports
If you are thinking of buying a home in South Africa or already own your own property, there’s some welcome news. The South African Reserve Bank has cut the interest rate, and this means real relief when budgets are already feeling tight.
The repo rate is now down by 25 basis points, sitting at 7.25 percent. The prime lending rate has dropped to 10.75 percent. It might not sound huge at first, but even a small cut like this can give homeowners some breathing space. Especially now.
This decision wasn’t a shock to economists, but it does show that the Reserve Bank is listening. Five out of the six Monetary Policy Committee members voted for the cut, while one member wanted an even deeper slash of 50 basis points. Clearly, the money mood in the room was in favour of some relief.
Economic conditions are still rocky. SARB Governor Lesetja Kganyago spoke plainly about it. Mining and manufacturing are not looking good. Unemployment is rising. The bank has trimmed its growth forecast too. We’re now looking at just 1.2 percent growth in 2025, with a slightly better 1.8 percent expected in 2026. Not great, but at least it’s not going backwards.
There’s a little bit of good news on the inflation front. Fuel prices are lower and inflation is tracking below the Reserve Bank’s target range. On top of that, they’ve taken planned VAT increases out of future projections. That gave them more space to ease things up and lower the rate without making inflation worse.
What Property Professionals Say About the Interest Rate Cut
In the housing world, this is being seen as a step in the right direction. Samuel Seeff from Seeff Property Group called the cut a relief but said we could have used a bigger one. According to him, households are still under serious pressure, and a bolder move would have helped more.
Francois du Toit from Tyson Properties is also cautiously optimistic. He says the cut is positive but warns that things like upcoming fuel taxes could still put pressure on consumers. His advice? Be realistic, budget smart, and don’t expect everything to turn around overnight.
Andrew Golding from Pam Golding Property Group welcomed the decision too. He sees it as a shot of confidence for the property market. Whether you're already in your home or looking to buy your first one, a lower interest rate can mean smaller monthly payments. And when money’s tight, every rand counts.
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So how much are we actually saving? According to data from ooba Home Loans, the average South African homeowner is going to feel the difference. On a R1 million bond, the monthly saving is around R170. On a R2 million bond, it's R339. For the average home in South Africa, priced around R1.66 million, homeowners are now saving about R282 a month. Not life changing, but definitely helpful for households juggling groceries, petrol and everything else.
Here’s a quick look at the numbers:
| Bond Amount | Monthly Saving |
|---|---|
| R850,000 | R145 per month |
| R1,000,000 | R170 per month |
| R1,500,000 | R255 per month |
| R1,661,519 (average home) | R282 per month |
| R2,000,000 | R339 per month |
| R2,500,000 | R424 per month |
| R3,000,000 | R509 per month |
| R3,500,000 | R594 per month |
| R4,000,000 | R678 per month |
| R4,500,000 | R763 per month |
| R5,000,000 | R848 per month |
Some Advice From Sandton Debt Counselling
Jo Stone, CEO of Sandton Debt Counselling, also says that there’s a smart way to use these savings: instead of spending the extra cash, keep your monthly repayments the same as before. That way, you can knock years off your bond and save thousands in interest.
Sure, this interest rate cut won’t fix everything, but it’s a step in the right direction though. It will give consumers some much needed breathing space. And in tough times, that’s no small thing.