Prime Interest Rate History in South Africa

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37 comments on “Prime Interest Rate History in South Africa”

  1. Can interest rates be reduced on an existing bond?
    I have an existing bond with a variable interedt rate, so I was wondering whether I could request for the bank to reduce the interest rate?

  2. I recently applied for a home loan for 150k to buy a bank repossessed ABSA house,I was given a provisional document of approval at an interest rate of 8.5%.When the final documents were drafted the interest rate was changed to 10,25%.As we speak the current prime interest rate is sitting at 9%.when I enquired n ow they got to that figure I never got a straight answer.Can you help.

  3. hi
    i am in the process of buying second property the property cost 350 000 and the bank nedbank want to charge me variable prime link interest of 15.6%. does that sound correct my total interest comes to 793 520.13. please help.

  4. Hi,

    My current bond repayment is prime less 1.59%. I have enquired from my bank quotes on fixing my rate and the gave my a quote of prime for the next 5 years. Do you think it is wise to fix my rate or should I leave it a prime less 1.59%?

  5. What a GREAT website! I have been struggling for months on 100 different websites to get info and general knowledge on purchasing a home, here I can equip myself not to make mistakes other people are making, and to make well informed discussions. Even if its a R500 that can be saved each month but at the same time paying my bond off effectively ever cent should be valued in theses days! KEEP UP THE GOOD WORK.

  6. Hi Sheldon – commiserations. A very frustrating situation you’re in. I suspect that the contract will be binding until such a time as you pay off the bond. I’d see if I could raise another bond on the propery / get some bridging finance and then close down the original bond. As interest rates are set to rise, I’d the consider getting into another fixed rate deal, but one that starts at a lower base.

  7. Hi i purchased a home in 2007 and at the time was advised that it would be feesible to fix the interest rate at 13%.Well now im paying R8000 per month when i could be paying 6K per month.Got the bond with Absa.Any idea or assistance that would help me rectify the error would be appreciated.Thanks Sheldon 0720235672


  9. It is interesting how the interest rate has become another form of social engineering. If we had another currency shock or worsening financial conditions, how much lower could the prime interest rate go?

  10. my gross is R 11,115.34 ,please advise on the how much home loan do i qualify for ,and how much am i going to be paying monthly?at what interest %.

  11. I am trying to locate a list that would show me FNB’s base interest rate on home loans since the year 2000. I have found a listing of prime interest rates for this period but am uncertain about the number of points above prime a standard home loan agreement would be pegged.

    your help will be sincerely appreciated.

  12. Thanks for a great site!
    Will reserve bank make last drop to boost economy?
    The sale of standard bank might pause this.The gold price is hovering low to where it should have been.The rand’s strength was not predicted.Do you think that they will drop the interest rate one more time by 50 points?Property prices did not drop as much as what was feared more than a year ago ,it seems to been more difficult to get your foot in on residential property,is this true?

  13. Great Graph…I am about to by a car and have to decide if I want flex rate at 12.8% or fixed rate at 15.8%. It looks like the rate will likely go up before the car is paid off in 6 years…but is it likely to go up with 3% in say a years time? I’m not sure if I should take flexi or fixed…

  14. Hi, the graph and history of interest rates is great however this is based on prime(Repo rate), can we have this in the JIBAR?

  15. To “Blessing”: A really helpful spreadsheet can be found at This allows you to enter different interest rates over the bond period and thus do projections in the pay-off period of your bond. It also allows you to add additional deposits and see what that does to the period.

    With reagrds to “Fixing” your interest rate. Info received from Standard Bank to consider is:
    1) The rate you will fix at is higher than the current by 1-2%. For e.g. Current rate is 10.5%, so you will only be able to fix at 11.5 – 12.5%.
    2) If you are currently receiving a concession based on a Group Scheme, you will lose this concession. So your interest rate will revert to the current rate + as per pt1.
    3) After your selected period to fix (12/18/24/36) months, you will probably have to re-apply for the group scheme concession.
    4) If you decided to continue fixing your interest rate after your selected period it will be set at whatever the rate is at THAT stage + the premium stated in pt1.
    5) Use the sheet above to calculate whether this will be worth it for your bond(s).

  16. Good Day

    I need to calculate the increase of my installment.
    On 07 july ’08 my installment was R6787, my installment jumped up to R7150 odd in aug- according to the table the intrest rate increased from 15% to 15.5% in june. Surely my installment should have stayed R6787?

    Very helpful site
    Thank you

    • Hi Marius,

      To view the interest rate graph you would need to have JavaScript enabled on your web browser.
      If you continue to have trouble please let me know.

  17. Good day,

    We’ve just been informed by our letting agent that our rental on our 2 bedroom flat is going up for the second time in a year due to “market related increases” would this be right if the interest rate has dropped by 4% since we’ve moved in.

    Thanks, I look forward to your response.


    • @Justine Adr,

      Although interest rates have come down, inflation still remains high and your agent may be factoring this into the rental. I would suggest that you ask them for a more detailed explanation for the increase.

  18. I am busy shopping around to buy a house, I would like to know if it is a good time to buy a house or rather wait now that we are in a economy meltdown .Interest rates have been dropped by 4.5% to stimulate investment in the economy and give bondholder a much needed relieve to afford bond paymnets.

  19. I registered my bond on the 17 April. The first debit came off this month.

    At the time of registation the rate was 13%, but changed to 12% early in May. I was debited this month based on 13%.

    Can anyone please explain??

    • Hi Veshlin,
      I would advise that you contact your bank and enquire about your debt order status.

      A similar thing actually happened to my bond repayment. The problem was that we had signed a document that stipulates that the bond installment is to remain unchanged if rates drop, but will be adjusted accordingly only when rates increase.

      The benefit of this was that if rates dropped I would maintain my monthly expense level, and actually pay off my bond faster

  20. Hey nice graph, its always easier to see whats going on when you have a picture! Lets just hope we don’t have the currency crash out that we had last time rates were aggressively cut.

    • Hi Graeme,

      Yeah, inflation is the hidden tax hey. I might be able to finally afford my bond repayments, but inflation may just erode my property investment.

      Thanx for the comment and complement!

  21. Hi Alan,
    The Prime Interest Rate for all banks (incl Standard Bank) would have been 14.5% on 23rd of November 2000.

    The interest rate was cut to 14.5% on the 1st of Feb 2000 and remained unchanged, until another cut was made on the 18th of June 2001.


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