This latest cut in a series of multiple interest rate decreases since November 2025 means homeowners will have benefited positively from the shaving of 150 basis points in their home loan repayments. It brings the prime interest rate to 10.25%, which is a positive move alongside the news that inflation is on track to reach the projected low of 3%. Real estate market stakeholders comment:
Chris Tyson, CEO of Tyson Properties:
Although 2025 has been a turbulent one for the economy as a whole, a cumulation of smaller interest rates since September 2024 has added up to good news for the property sector and could continue to have a positive impact on the entire property sector into 2026.
We are encouraged by the creation of a new inflation target at 3%, which immediately replaces the previous target range of between 3 and 6%. This will apply over the next two years and is expected to not only decrease inflation expectations but also create room for lower interest rates. This supports household spending and business investment, boosting economic growth and job creation.
Further interest rate cuts will make property even more affordable in 2026. Those that are considering buying their first apartment or home should begin shopping.
Bradd Bendall, BetterBond’s National Head of Sales:
Homeowners can breathe a sigh of relief knowing that they will have a bit extra in their pockets for the festive season. Another cut in the prime lending rate will bring welcome reprieve to homeowners who will now pay less on their monthly bond repayments. BetterBond’s latest data points to a residential property market that is steadily gaining momentum. Home loan applications have increased by 30% since the third quarter of 2023—the highest level since early 2022. The proportion of home loans granted to first-time buyers is 17.4% higher year-on-year, an important indicator of market recovery. Deposits required for bonds are also trending lower, declining by 21% for new buyers. Today’s rate cut is expected to further improve affordability and access to credit, giving buyer confidence another welcome boost as we head into the festive season.
Greg Dart, High Street Auction company director:
Although not a large drop in and of itself, the interest rate cut will continue to compound the advances that have accrued since the Reserve Bank began cutting interest rates in September 2024. The new 3% inflation band is expected to lock in lower interest rates over time; however, with inflation expected to remain above this at 3.5% during December 2025 and even climb a little higher as beginning-of-year service increases kick in, there might be an interim halt in rate cuts at least until the middle of 2026. Nevertheless, the positive sentiment in the auction space echoes the strengthened optimism amongst property brokers that was expressed in First National Bank’s Property Sales Activity Survey for the third quarter of 2025.
Adrian Goslett, Regional Director and CEO of REMAX Southern Africa:
The decision by the SARB to lower interest rates during the current global economic climate is a favourable approach to aid in financial relief for many South Africans. As a result of stagnant economic growth, this small rate cut can provide a financial buffer for homeowners and prospective buyers across the country. Opting to lower interest rates by 0.25% suggests increasing faith that the domestic economy is slowly relieving itself from external risks, including unpredictability in the global market and local tax pressures, to permit modest monetary support. We remain optimistic that the decision by the SARB may signify the start of renewed growth in the property market as we head into the new year. In the meantime, we encourage potential buyers to make use of these more accessible lending conditions and the favourable property prices that are currently available.
Samuel Seeff, chairman of the Seeff Property Group:
The rate cut is particularly good news for the property market. 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, which have brought significant savings for homeowners and prospective buyers. The cut will further lower the cost of home loans and improve property affordability, a great incentive to attract more buyers to the market. This will stimulate more demand, which in turn is good news for sellers and overall sales volumes.
The savings on the monthly repayment on a R1 million home loan (over 20 years) is now down by over R1,000 compared to mid-2024. This is a great incentive for buyers, especially for more first-time buyers to get into their own homes.
While the cuts have been most welcome, 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 Reserve Bank to consider a further rate cut in January.
Gavin Lomberg, CEO of ooba Home Loans
This sixth rate cut since September 2024 has effectively reduced borrowing costs by 1.5% in the past 14 months, providing meaningful relief for consumers and reinforcing optimism in the country’s recovery. It’s a positive signal for the property market going into 2026. This is the perfect opportunity for homeowners to use their savings to strengthen their financial position. I recommend a balanced approach, such as rather than paying off a bond completely, given the potential to lose out on certain tax deductions and the benefits of holding a low interest rate, homeowners should channel extra funds into their home loan to save on long-term interest while keeping flexibility. We’re entering 2026 with the most encouraging conditions the property market has seen in years. Lower rates mean more opportunity for homeowners to save, for first-time buyers to enter the market, and for our economy to regain momentum.
