How much you’ll SAVE on a R1 million bond after interest rates cut

The South African Reserve Bank (SARB) last Thursday voted to cut interest rates by 25 basis points in a decision that would’ve brought welcome relief to those South Africans in debt.

As a result of the decision, the prime lending rate is 10.25% while the repo rate now stands at 6.75%.

Governor Lesetja Kganyago announced the decision at a press briefing, confirming that the SARB’s Monetary Policy Committee’s (MPC) six members were unanimous in making the decision.

The November meeting marked the final rates decision for the year, with the MPC next set to meet on 29 January 2026.

Who are the SARB’s MPC?

The South African Reserve Bank’s monetary policy committee meets every second month to announce changes – if any – to the country’s repo and prime lending rates.

The meetings take place in January, March, May, July, September and November – and always on a Thursday at 15:00.

Currently, the committee comprises of six people, with Lesetja Kganyago holding the position of governor of the SARB – and the deciding vote if necessary.

Monthly bond repayment table

The table below shows the new monthly bond repayments on various bond values over a 20-year period assuming no deposit and repayments at prime following Thursday’s decision, as well as the now ‘old’ repayments, as well as the monthly saving.

As one can see, the monthly saving on a R1 million bond is R168 – at least for the next two months – until the MPC meets again.

Meanwhile, had you just taken out a R1 million bond prior to Thursday’s interest rate announcement and planned to repay it over the full 20 year (240 month) term, you would’ve been in for a total of R2 396 112.

However, following the 25 basis point cut, that total now stands at R2 355 944. That equates to a saving of R40 168.

The good early news is that more rates cuts are forecast in 2026.