R1,000 relief a month for homeowners

The most recent repo rate cut will offer homeowners in South Africa hundreds of rands worth of relief every month, further boosting affordability, demand, and overall confidence in the property market.

The 25-basis-point rate cut announced by the Reserve Bank on 20 November 2025 brings welcome news and early festive cheer for consumers, the economy, and the property market.

This is according to Seeff Property Group chairman Samuel Seeff, who explained that the cut brings the repo rate down to 6.75% from 7.00%. It also brings the prime rate down to 10.25% from 10.50%.

The decision was anticipated, given the favourable economic indicators. This includes inflation at a historic low of just under 3.3% on average for the year.

Despite the recent uptick, it is still comfortably within the Reserve Bank’s proposed new lower target range of 2% to 4%. The rand also remains stable below R18.00 to the United States dollar, recently strengthening to around R17.20.

Further positive news for the economy includes South Africa’s removal from the Financial Action Task Force’s ‘greylist’ and an S&P credit rating upgrade to BB for the first time in 20 years.

Additionally, South Africa has also seen positive job growth data for the last quarter and a slightly improved growth outlook.

The cut brings further vital relief to the economy, lowering the cost of debt and freeing up more disposable income to spend in the economy, especially ahead of the busy annual retail season.

The rate cut is particularly good news for the property market, Seeff said. It will further boost affordability and demand, especially as the market continues to lag despite the four rate cuts since the third quarter of last year.

The cut will further lower the cost of home loans and improve property affordability, a great incentive to attract more buyers to the market.

Seeff added that this cut will stimulate more demand, which in turn is good news for sellers and overall sales volumes.

Savings for homeowners

Seeff said that the rate cuts since 2024 have brought significant savings for homeowners and prospective buyers.

The savings on the monthly repayment on a R1 million home loan (over 20 years) are now down by over R1,000 compared to mid-2024. This is a great incentive for buyers, especially first-time buyers, to own their own homes.

While the cuts have been most welcome, Seeff said the interest rate is still slightly higher compared to the pre-pandemic level, and the property market has not yet fully recovered.

“Given that inflation is at a historic low and expected to remain within the proposed new inflation target rate, we would urge the Bank to consider a further rate cut in January,” he said.

As a result of the 20 November 25 basis points rate cut, mortgage repayments will reduce by the following rates compared to last month, based on a 20-year repayment period at the prime rate.