2025 Could Be the Best Year in Years to Get a Home Loan in South Africa
If you’ve been dreaming about buying a home, 2025 might be your best chance in nearly a decade. Interest rates are the lowest they’ve been since 2022, and banks are more open to approving loans. Here’s why this year is such a big deal for buyers right now.
Interest Rates Have Dropped – And It Saves You Money
Since September 2024, the South African Reserve Bank (SARB) has cut interest rates five times in a row.
The prime lending rate is now 10.50% (as of August 2025).
This is down from 11.75% a year ago — a 1.25% drop in less than 12 months.
Example: On a R2 million bond over 20 years, this drop could save you around R1,500–R2,000 per month in repayments (depending on your exact loan terms).
Inflation is Low – More Rate Cuts Could Happen (But Not Guaranteed)
Consumer inflation is sitting at 3.0% — the lowest in years and at the bottom of the SARB’s target range (3–6%).
When inflation stays this low, it gives the Reserve Bank more room to keep rates lower for longer. Some experts predict more cuts in late 2025, but this will depend on economic conditions.
More People Are Buying Homes
Lower rates have boosted buyer confidence:
Home loan applications are up 7.4% compared to last year.
First-time buyers are leading the charge — making up about 46.5% of all applications (and in some lender reports, even higher).
Why This Matters for You
This is a rare “sweet spot” for homebuyers:
✅ Loans are cheaper to repay.
✅ Banks are more willing to approve 100% (and even 105%) loans.
✅ You could afford a better home without increasing your monthly budget.
With prime interest rates at their lowest since 2022 and home loan approvals on the rise, 2025 is shaping up to be one of the best years to buy a home in South Africa.
If you’ve been waiting for the right time, now could be it,before rates or market conditions change.