The decision in September to keep South Africa’s repo rate unchanged at 7.00%, marks a pause after a series of five cuts over the past year that has put disposable expenditure of more than R1 500 into the pockets of homeowners with variable-rate mortgages in the R2 million range.
This decision means the prime lending rate will stay at 10.50%. For homeowners, the period of rapid relief may have taken a breather, but property experts are urging a disciplined financial strategy that could translate the recent gains into monumental long-term savings.
Since September 2024, the Monetary Policy Committee (MPC) has delivered a cumulative 125 basis point cut, slashing the repo rate from 8.25% to 7.00%.
For homeowners with a R2 million variable-rate bond, this has decreased their monthly instalment by more than R1 600. However, Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Craighall and Randburg, warns that this extra cash should not be seen “mad money”.
