What a 0.25% rate move does to your bond repayment
On a R1.5 million bond over 20 years, a 0.25 percentage point rate rise adds about R254 a month - and roughly R61 000 over the life of the loan.
In 30 seconds
- A 0.25 point rate rise adds about R254 a month on a R1.5 million bond - R15 228 becomes R15 483 at 11%, over 20 years.
- Over the full 20 years that is about R61 000 more interest from one rise of 0.25 percentage points, if the bond runs to term.
- The cost scales with the loan: about R169 a month on R1 million, R338 on R2 million - roughly R17 per month for each R100 000 borrowed.
Where rates stand
The SARB raised the repo rate by 0.25 percentage points to 7.25% at its September 2026 meeting, which puts the prime lending rate at 10.75%. Most home loans are priced at prime plus or minus a margin, so your bond moved by the same step.
We could not load the SARB's own MPC statement when we checked (23 Oct 2026); the 7.25% repo and 10.75% prime figures come from news reports of the September 2026 decision, and we have not confirmed the date of the next meeting. Check your bond statement for your actual rate - it may be above or below prime.
What one step costs, in rand
The table uses a 20-year bond and the standard repayment formula. It starts at 10.75% and shows one step down and one step up.
| Bond | At 10.50% | At 10.75% | At 11.00% |
|---|---|---|---|
| R1 000 000 | R9 984 | R10 152 | R10 322 |
| R1 500 000 | R14 976 | R15 228 | R15 483 |
| R2 000 000 | R19 968 | R20 305 | R20 644 |
On R1.5 million, the move from 10.75% to 11% adds R254 a month. The move from 10.5% to 10.75% added R253. A quarter of a point is a small number on a rate sheet and a real line in a monthly budget.
The cost over the whole bond
Over 240 months, R1.5 million costs about R3 594 000 in repayments at 10.5%, R3 655 000 at 10.75% and R3 716 000 at 11%. Each step is worth about R61 000 in extra interest. That is only true if the rate stays put and you hold the bond to term - rates move both ways, and extra payments shrink the figure.
A shorter bond feels it more per month, not less in total
On a 15-year bond of R1.5 million the same step adds about R235 a month (R16 814 to R17 049). The monthly hit is a little smaller, because the balance falls faster, and the total interest is far lower.
What you can do about it
- Know your own number first. Work out what a 0.25 point move costs on your balance: about R17 a month for each R100 000 still owing.
- Ask your bank whether the instalment resets. Some banks recalculate the instalment at each change, others let it stand and lengthen the term. Check which applies to you.
- Add a little extra if you can. Even a small extra payment offsets a rate rise - see what R1 000 a month really saves.
- Keep the buffer. A rising-rate budget needs room; see how many months your emergency fund needs.
How MaxWealth helps
The bond affordability tool takes your own loan amount, term and rate and shows the repayment, so you can try a quarter point either way before the bank's letter arrives.
Sources
- Repo 7.25% and prime 10.75% from 25 September 2026: news reports of the SARB MPC decision; primary source SARB - Current market rates could not be read when checked (see note above).
- Repayments and totals: our own calculation with the standard monthly-compounding amortisation formula, 240 months (and 180 for the 15-year case). The bond rate you actually pay is set by your bank.
Education, not financial advice. This post explains how the rules and the arithmetic work. It does not recommend any financial product, and your own situation may differ - speak to a registered financial adviser or tax practitioner before you act. Figures were checked against the linked sources on the date above.