The prime lending rate sees a 25-basis point cut

Published July 2025

Homeowners will welcome today’s decision to drop the prime lending rate to 10.5%, a level last seen in 2022. This cut sends a strong signal to investors that the country is intent on driving economic growth despite global challenges. South Africa’s move is aligned with a cautious global trend toward stimulating consumer spending and investment.

A lower prime lending rate provides much-needed relief to consumers and homeowners struggling to balance their monthly obligations with rising living expenses. For the average homeowner with a bond, this reduction could translate to meaningful monthly savings. On a R2 million home, by example, the monthly bond repayments will drop by R337 from R20,305 to R19,968. It will also reduce the amount payable over a 20-year period by R80,876.

We expect this cut will further invigorate the housing market, which has already shown remarkable signs of recovery in recent months. BetterBond’s July data shows that bond applications rose by 7.4% for the 12 months to May 2025, with home loans granted up by an impressive 13.6%.

These volumes point to renewed buyer confidence and a more stable market environment that should encourage more aspirant first-time buyers to enter the property market.

Thinking about buying? Remember the BetterBond Promise

We will submit your home loan application to multiple leading banks – including your own. When your application comes from us, the banks compete for your business. But that’s not where it ends. The next step is for us to negotiate with the banks for even better offers. When we have all the best offers on the table, you choose the one that’s a perfect match for your budget. What’s more, we don’t charge you for our services – the bank gives us a once-off fee for your business! And that’s the BetterBond Promise in action.