Property

R839 per month joy still expected for South African homeowners

Malcolm Libera

 ·16 Feb 2026

Standard Bank is forecasting three 25-basis-point interest rate cuts in 2026, which is roughly R839 in savings per month for a homeowner paying off an average home in South Africa.

Presenting the bank’s 2026 economic outlook, chief economist Goolam Ballim said South Africa has not experienced “this much of a positive macroeconomic climate in a long decade”. 

His optimism comes from several milestones achieved in 2025, including sovereign credit rating upgrades, progress on macroeconomic reforms, the country’s removal from the grey list, and agreement on a lower inflation target.

Ballim said these improvements create a stronger foundation for households and businesses. “We anticipate further rate relief this year. We think it could be up to three-quarters of a percentage point, cumulatively, further stimulating consumer credit,” he said at the group’s Rosebank headquarters.

Standard Bank expects the repo rate to fall to 6% by the end of 2026, down from the current 6.75%. This implies three 25-basis-point cuts over the course of the year. 

While most economists are forecasting only two cuts, in line with the SARB’s January quarterly projection model, Ballim believes there is room for more easing.

“The real repo rate [the repo rate minus inflation] is still fairly high and therefore encouraging the Reserve Bank’s proclivity for lower rates,” he said.

Despite the anticipated rate relief, Standard Bank has cautioned that 2026 will not be “a miracle year” for economic growth. The bank forecasts GDP growth of 1.4% in 2026, only slightly higher than the 1.2% expected for 2025.

Ballim noted that the SARB’s move to adopt a lower 3% inflation target, agreed with the finance minister and National Treasury last year, has helped anchor inflation expectations at significantly lower levels than under the previous 3% to 6% target range.

Even so, inflation is expected to remain slightly above the new target. Standard Bank forecasts consumer inflation to average 3.4% in 2026, easing to 3.3% in 2027 and 3.2% in 2028.

Savings for homeowners paying off a bond

Data from ooba Home Loans shows that a 125-basis-point reduction (assuming the MPC cuts rates this month by 25-basis points) translates into monthly savings of R848 on a R1 million bond and R1,697 on a R2 million bond.

The latest oobarometer report highlighted that the average home price in South Africa has climbed to R1,695,257.

This aligns with what BetterBond gauged as the national average, noting a price of R1.6 million in BetterBond’s latest (January) Property Brief.

This means a 1.25% drop in interest rates would bring notable relief to homeowners over the last year.

For the average South African home priced at R1.695 million, the monthly repayment decreases by R1,438, providing much-needed relief to households.

While uncertainties remain, the combination of lower rates, easing inflation, and renewed confidence will benefit the property market and prospective buyers.

The savings on bonds for property prices between R850,000 and R5 million can be found below: