On 30 May, the South African Reserve Bank announced a 0.25% cut to the repo rate. In line with this adjustment, REAL has reduced the interest rate applied to our home loans.
REAL’s repayment structure provides stability by keeping your instalment fixed for 12 months at a time. Interest rates may change during the year in response to repo rate movements, but your instalment only adjusts once a year on your scheduled anniversary date. This gives you more predictable monthly payments while allowing the loan to stay aligned with market conditions. It also spreads the impact of rate changes over the future lifetime of your loan, helping you manage affordability in a more gradual and sustainable way over the duration of your loan.
If you currently have a loan with REAL, your monthly instalment will remain the same until your next annual anniversary date, as set out in your loan agreement. However, the reduced interest rate is applied with immediate effect. Although your instalment amount does not change right away, the lower interest rate affects how your future repayments are calculated.
For customers whose loans are up to date, this means a greater portion of your monthly instalment now goes toward reducing your outstanding loan balance. If your account is in arrears, the effect may differ depending on your loan status and how repayments are allocated between interest, fees, and capital.
Please note, the way this change affects your loan depends on your current loan structure. If you have a customised agreement or repayment arrangement, the impact may vary slightly.