"An Attorney near me" - Cape Town legal directory
lawyer@capetownlawyer.co.za or WhatsApp

What's a good home loan interest rate?

In South Africa, home loan interest rates are tied to the prime lending rate, which is sourced live from the South African Reserve Bank (SARB). Banks offer rates as "prime plus" or "prime minus" a percentage, depending on their risk assessment of your ability to repay the loan.

Lower rates are better as they mean lower interest charges over time. For example a prime minus 1% rate at the bank will result in lower interest charges than a prime plus 1% rate.

You can reduce your personal prime rate adjustment by:

Placing a higher deposit with the bank (e.g., 20%—R200,000 on R1 million—vs. 10% can cut your rate by 0.25% or more, reducing the loan amount financed).
Having a high net income relative to monthly debt repayments.
Improving your credit score by paying bills on time and reducing your debt relative to your earnings (aim for 670+ and debt below 36% of income).
Shopping around at different banks by yourself or with a bond originator like ooba or BetterBond (they can secure rates like prime minus 0.75%, or 9.75%).
Having other accounts at the bank:
- Private wealth clients may get lower rates (e.g., RMB Private Wealth, FNB Private Clients, or Absa Premium might offer 0.25% to 0.5% off).
- Loyalty program interest rate adjustments (e.g., 0.1% to 0.25% reductions).
- Absa may offer qualifying bond applicants an additional -0.25% off your variable prime interest rate on condition that you:
  - Open an Absa cheque account (Gold or Premium Account or Private Banking Account) &
  - Deposit at least R3000 into your Gold Value Bundle account or R15 000 into your Premium Value Bundle account per month , and
  - Place a debit order to pay your Home Loan Account from your Absa cheque account.
  - Keep your Home Loan account up to date and not default under this agreement

In 2025, with the repo rate at 7.0% and more cuts possible, banks are competitive—rates below 10.5% are increasingly common for savvy applicants.

Best home loan rate possible

/Iit is rare to get a better rate than Prime - 2%.

Bank Loyalty Programs

Benefits from bank loyalty programs may help offset your home loan costs. For example, FNB eBucks top-tier members might save 0.25% (R23,280 on R1 million over 20 years), while Absa Rewards or Nedbank Greenbacks could waive fees (e.g., R6,037 initiation). Pair these perks with a high deposit and strong credit score for the best results.

Absa Rewards also offers the following home-related benefits::

10% cash back on MyTelnet home connectivity products and services
10% cash back on Fidelity ADT monthly subscriptions

Remember to factor in how much the loyalty program costs; there is often a monthly fee.

Fixed or variable rate

Some banks (e.g. Absa) offer the choice between having Choose between an interest rate which is fixed, and an interest rate which varies with the prime rate.

Disqualification from home loan

Yoiu will likely not be able to get a home loan with a bank if you currently:

are receiving debt counselling; or
have a pending debt review or insolvency applicationr; or
are insolvent

Ask questions about home loan rates here.

Property transfer & sale Info

Sellers of property & buyers, speak to a property lawyer before you hire an estate agent!

The property transfer process in South Africa - protect your interests.
Conveyancing lawyers in Cape Town.
- Checklist to help you identify the best conveyancer near you.
- Bellville conveyancing attorneys
- Blouberg conveyancing attorneys
- Milnerton conveyancing attorneys
- Pinelands conveyancing attorneys
- Tableview conveyancing attorneys
Transfer costs calculator for property anywhere in South Africa.
Deeds Registeries Act.
Servitudes
- Usufruct Agreement on Property in South African law.
  - Usufruct value calculator (only one in South Africa)
Land conveyancing
Transfer attorney vs bond attorney.
Commercial Property:
- Transferring property as a going concern.
- Commercial Property conveyancing quote
Marriage/Divorce-related:
- How to transfer property from husband to wife (or vice versa); whilst still married (ie not getting divorced).
  - Donation of property agreement not followed through.
  - When property is erroneously in your spouse's name.
- "Protection" of fixed property using a trust.
- Conveyancers conduct the transfer of property ownership from one spouse to another (or to a third party, if relevant).
- Liquidator to sell property & divide proceeds as part of divorce.
Property sales
- Use conveyancer to guide your private property sale.
- Instead of using real estate agents rather use professional lawyers to sell your property.
- Urgent house sale.
- How to check whether an estate agent is licensed.
- Example of a property sales agreement.
- FLISP Housing subsidies.
- Property practitioner's Act.
- Code to guide conduct of property practitioners.
Property purchases
- Scams property purchasers should watch out for.
- Home loan repayments calculator, with an estimate of the adjustment to prime to reflect the borrower's credit risk profile.
Terminology

Conveyancing & property transfer discussion forum

Note that this is a public forum - exercise caution before acting on info and use at own risk. Anybody may ask and answer, and you don't know what their level of expertise is. No information on this website should be acted on without first consulting with a lawyer to test its validity. Do not share private details here.