THE VANHAUS JOURNAL · FINANCE

What a 1% rate change means for your next home

Use a simple sensitivity test before committing to a long-term repayment.

VANHAUS Editorial · 20 October 2026 · Finance explainer

Use a dated starting point

SARB’s published prime snapshot was 10.75% on 9 October 2026. Prime is a reference rate, not a promise about your personal offer. The interest rate you are offered may differ and can change over the loan’s life. The website’s calculator deliberately lets you edit the assumption.

Run the same loan three ways

For an illustrative R2 million capital-and-interest loan over 20 years, the monthly repayment is approximately R20,305 at 10.75%. At 11.75% it is about R21,674; at 9.75% it is about R18,970. These calculations assume monthly payments and a constant rate for the illustration. They exclude fees, insurance and other ownership expenses.

Test the household, not just the formula

Add each repayment to a complete household budget. Include predictable annual costs, irregular income and the expenses that are easy to forget when viewing a property. Ask whether the higher-rate case leaves a reserve or requires you to stop saving entirely.

A deposit changes more than the first payment

A larger deposit reduces the amount borrowed, but committing all available cash can create a different vulnerability. Compare the repayment benefit with the need to retain accessible funds for moving, repairs and disruption. The appropriate balance depends on your finances.

Make the risk visible

Our practical approach is to save a base budget and a higher-rate budget alongside the property comparison. Rate forecasts are uncertain; an affordability decision grounded in multiple scenarios is more useful than assuming the next MPC decision will solve a tight budget.