· Updated · Built around the Bond repayment calculator
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Four numbers decide your bond repayment: the price, your deposit, the interest rate and the term. Only the price is really fixed once you have fallen for the house. The other three you can work on - and the rate is the one most buyers forget to negotiate.
Where rates stand today
- The Reserve Bank's policy (repo) rate is 7.25%, up 0.25 percentage points from 25 September 2026 (SARB Monetary Policy Committee statement, September 2026).
- That puts prime at 10.75% - South African banks set prime at repo + 3.5 percentage points. Your bank quotes your bond as prime, prime minus something, or prime plus something.
- The next rate decision is due on 19 November 2026 (SARB events calendar). Every 0.25% move changes the repayment on every variable-rate bond - the interest rate change calculator shows by how much.
Slide it: what each lever does
Start from your own numbers. The chart shows what you still owe the bank at the end of each year - your choice against a "standard" bond at prime with a 10% deposit over 20 years.
1. The rate - negotiate it
On a R1 800 000 bond over 20 years, prime (10.75%) costs R18 274 a month; prime minus 0.5% (10.25%) costs R17 670 - R605 less every month and about R145 000 less interest over the life of the loan. That half a percent is a phone call, not a sacrifice.
- Apply at more than one bank, or use a bond originator who applies at several for you. Banks compete on the margin they add to or take off prime.
- A clean credit record, a deposit and a stable income are what earn you a lower margin.
- Ask for the rate offer in writing and compare the rate, not just the monthly figure - a longer term can hide a worse rate. Our home loan comparison calculator puts two offers side by side.
2. The deposit - it cuts the loan and often the rate
- On a R2 000 000 home at prime over 20 years, no deposit means R20 305 a month; a 20% deposit (R400 000) brings it to R16 244.
- Many banks still lend up to 100% of the price, but a deposit usually earns a better rate offer - so it helps twice. The bond deposit savings calculator shows what each 10% saves.
- Remember the cash you need on top of the deposit: transfer duty (R33 786 on a R2 000 000 home on the SARS table), conveyancing and bond registration fees. The bond costs calculator adds them up.
3. The term - lower repayment, much more interest
- On R1 800 000 at prime, stretching 20 years to 30 drops the repayment from R18 274 to R16 803 - but adds about R1.66 million of interest.
- If you take 30 years to qualify, you can still pay it like a 20-year bond. The pay it off faster calculator shows what an extra amount each month saves.
4. The income the bank wants to see
Banks commonly keep the repayment under about 30% of gross monthly income. That is a lending rule of thumb, not a law - each bank applies its own affordability test under the National Credit Act. On R18 274 a month, 30% means a gross income of about R60 900. Try the affordability calculator to go the other way, from your salary to the biggest bond.
Your bond, live
Sources
- SARB, Statement of the Monetary Policy Committee, September 2026 - policy rate 7.25% from 25 September 2026: resbank.co.za. Prime = repo + 3.5% is the banks' convention, not set by the SARB.
- SARS transfer duty table, unchanged for 2026/27: sars.gov.za.
- Repayments: the standard annuity formula banks use, repayment = loan x r / (1 - (1 + r)-n), r = yearly rate / 12. Worked out by CalcSA, checked 15 October 2026. Try them in the bond repayment calculator.
- The 30% income guide is common bank practice, not verified from a primary source - each bank sets its own test.
Calculators used in this post
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