On 28 May 2026, the South African Reserve Bank’s Monetary Policy Committee raised the repo rate by 25 basis points to 7.00%, moving the prime lending rate to 10.50%. For anyone currently repaying a home loan, or in the process of applying for one, this is the number that changes your monthly calculation.This is the first rate increase in approximately three years. Most South African home loans are variable and linked to prime, which means this adjustment feeds directly into what you pay each month. The shift is modest, but understanding exactly what it means for your specific loan size helps you plan with confidence rather than uncertainty.What Changed and WhyThe repo rate moved from 6.75% to 7.00%. Prime followed, moving from 10.25% to 10.50%. The SARB’s decision reflects concerns around persistent inflation, elevated energy costs, and global economic conditions. The adjustment is described by the committee as a measured response to those pressures.How Much More Will You Pay Each MonthThe figures below are based on a standard 20-year bond term at prime. They are estimates. Your bank, your remaining term, and your specific client profile will determine the exact figure.On a R1 million bond, the increase is approximately R168 per month.On a R1.5 million bond, approximately R252.On a R2 million bond, approximately R336.On a R3 million bond, approximately R504.On a R4 million bond, approximately R672.These amounts reflect only the 25-basis-point adjustment. They do not account for any arrears, shortened terms, or existing rate concessions.What This Means If You Are Currently Pre-ApprovedPre-approval figures are typically calculated at a specific rate at a point in time. If your pre-approval was issued before 28 May 2026, your affordability calculation was based on a prime rate of 10.25%. At 10.50%, your qualifying amount may shift slightly, and the monthly repayment you budgeted for will be higher.It is worth revisiting that figure with your bond originator before you sign an offer to purchase. A small adjustment in rate can affect which properties sit comfortably within your repayment range and which ones place you under unnecessary pressure.What This Means If You Are Already Repaying a BondFor most existing homeowners, the increase is manageable on paper. The practical question is whether your household budget was already stretched close to its limit at the previous rate. If your repayments were comfortable, this adjustment adds a moderate additional cost. If your cash flow was already tight, it is worth reviewing your monthly outgoings now rather than waiting for the next statement.Some homeowners in this position enquire about fixed-rate options. These offer payment certainty but are not always the lower-cost choice over the full term. That decision depends on your circumstances and is worth discussing with your lender directly.The Western Cape ContextIn established Cape Town suburbs and the broader Western Cape market, well-priced properties in sound condition continue to attract considered buyers. The rate adjustment does not change what makes a property a sound long-term decision. It does change the monthly cost of acquiring one, and that number deserves an honest look before you commit.Buyers who understand their revised repayment figure and have confirmed their affordability with their bank are in a stronger position to make decisions without second-guessing themselves later.