Reserve bank holds rates steady - What it means for homebuyers

“The decision, which keeps the home loan base rate at 10.5%, comes as residential demand is gaining momentum and prices are edging higher,” says Stephen Whitcombe, MD of Johannesburg-based FIRZT Realty.

“While some buyers may hesitate in the face of higher borrowing costs, waiting could end up costing far more.”

According to StatsSA’s Residential Property Price Indicator, annual house-price inflation reached 5.9% in April, with freehold homes rising by 6.4% and sectional title units by 4.8%.

“In this context, holding off in the hope of future rate cuts may only mean paying more for the same home - and needing a bigger bond,” Whitcombe explains. “Johannesburg remains the country’s financial hub, and demand here is strong, stock is moving, and prices are steadily increasing.”

He advises buyers to focus on fundamentals rather than trying to time the market. “If you find a property that suits your budget and lifestyle, act decisively. You can always accelerate repayments when rates drop, but you can’t go back and buy at yesterday’s prices.”

With economists divided on whether further cuts are likely this year, the rate outlook remains uncertain - but South Africa’s housing market continues to show solid growth. Serious buyers should stay prequalified, keep searching, and be ready to move when the right home becomes available.

Understand affordability

Banks recommend allocating no more than 30% of gross monthly income to bond repayments, but this isn’t a one-size-fits-all formula. Families with school fees, travel plans, or extended financial responsibilities may need to aim lower to keep budgets healthy.

Build in breathing room

Unexpected costs such as levies, rates, maintenance, or rising interest can quickly strain finances. Leave a 10–15% buffer above the planned repayment. “If your budget allows R15,000 a month, target a bond closer to R13,000. That cushion gives resilience when expenses increase.”

Align with lifestyle goals

A bond should support, not restrict, life plans. Those focused on travel, education or entrepreneurship might prefer a modest home to preserve flexibility, while buyers intent on building long-term wealth may choose to stretch slightly for property in a high-growth area.

Stay disciplined

Tracking spending and making extra repayments can have a big impact.

Seek professional advice

A property professional can advise on market trends, while a financial planner can help position the bond within an overall financial strategy.

A home should enhance your quality of life, not undermine it. By planning carefully, keeping repayments manageable, and acting promptly on well-priced properties, buyers can secure a home that supports long-term stability and growth.