How recent rate cuts benefit homeowners in 2025

THE announcement by the South African Reserve Bank (SARB) sees the repo and prime lending rates cut by 25 basis points for a second consecutive time.

- RHYS DYER

Now at 7% and 10.50% respectively, borrowing costs are officially 1.25% lower than they were a year ago, a welcome result that I believe will continue to support homebuyers and homebuying activity.

At the current prime lending rate of 10.50%, the monthly repayment on a home priced at our Q2 '25 average approved bond size of R1,455,712 equates to R14,534 over 20 years down from R15,776 just a year ago. Savings like these add up to almost R15,000 extra in a homeowner's pocket over a year.

Consumers' improved affordability is reflected in ooba Home Loans' latest figures. In Q2 '25, we saw an 11% year-on-year increase in home loan applications and an 18.5% increase in the total value of these applications.