Bond Repayment Calculator: Prime Is 10.75% (October 2026). What It Means for Your Home Loan
Prices and facts checked 16 October 2026. We don't accept payment for rankings.
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Short answer: South Africa's prime lending rate is 10.75%, after the Reserve Bank raised the repo rate by 0.25 percentage points to 7.25%, effective 25 September 2026. On a R1 million bond over 20 years at prime, that works out to about R10,150 a month. Each 0.25% rate move changes that by roughly R170 a month. The next rate decision is due in November 2026 (Moneyweb; SAnews).
General information, not financial advice. Your bank sets your actual rate (prime plus or minus a margin) based on your credit profile and deposit. Get written quotes.
Bond repayment calculator
How it works: a standard home loan formula with monthly compounding and equal monthly repayments over the term. It doesn't include bond registration costs, transfer duty, insurance or the bank's monthly service fee.
The September 2026 rate decision
- Repo rate: up 25 basis points to 7.25%, effective 25 September 2026. The decision was unanimous (SAnews).
- Prime lending rate: 10.75%. Prime sits 3.5 percentage points above the repo rate (7.25% + 3.5% = 10.75%) (Moneyweb).
- Why: headline inflation was 4.4%, with fuel prices and global conflict cited as upside risks. Inflation expectations are around 4%, above the 3% target (SAnews).
- What's next: Nedbank's economists said the risk of another hike in November "remains high" (Nedbank Group Economic Unit). That's a forecast, not a certainty.
Monthly repayments at today's prime
20-year bond, calculated at 10.75% and at 11% (a further 0.25% hike):
| Loan amount | At 10.75% | At 11% | Difference |
|---|---|---|---|
| R500,000 | R5,076 | R5,161 | +R85 |
| R1,000,000 | R10,152 | R10,322 | +R170 |
| R1,500,000 | R15,228 | R15,483 | +R255 |
| R2,000,000 | R20,305 | R20,644 | +R339 |
How to cut your bond costs
- Negotiate the rate. Banks often offer prime minus a margin to buyers with a good credit record and a deposit. A bond originator can apply to several banks at once.
- Pay a little extra each month. Extra payments go straight to the capital and cut the total interest. Even R500 a month extra makes a real difference over 20 years.
- Check your credit report first. Errors can cost you a better rate. You're entitled to inspect each credit bureau's file about you free once every 12 months (National Credit Act, s72). See our free credit report guide.
- Budget for the upfront costs. Transfer duty applies on homes above R1,210,000 (SARS). Use our transfer duty calculator. Conveyancing and bond registration fees are on top.
FAQ
What is the prime rate in South Africa now?
10.75%, effective 25 September 2026, after the repo rate rose to 7.25%.
When is the next interest rate decision?
The Reserve Bank's Monetary Policy Committee is next due to meet in November 2026. Nedbank's economists see a high risk of another hike.
How much is a R1 million bond repayment?
About R10,150 a month over 20 years at 10.75%, before fees and insurance.
How is the prime rate set?
In South Africa, prime has been 3.5 percentage points above the Reserve Bank's repo rate, so it moves when the repo rate does: 7.25% + 3.5% = 10.75%.
Will my repayment change automatically?
If your bond is linked to prime (variable rate), yes, usually from the next repayment after the change. Fixed-rate loans don't change during the fixed period.
Sources
Pages we used for this article, checked on or before the update date above.
- Moneyweb · moneyweb.co.za
- SAnews · sanews.gov.za
- Nedbank Group Economic Unit · group.nedbank.co.za
- National Credit Act, s72 · gov.za
- SARS · sars.gov.za
Changelog: 16 Oct 2026, first published at a 10.75% prime rate.