If this reform goes ahead, it won't change how much South Africans actually pay for credit overnight, but it will change the language and structure banks use to quote home loans — a real shift for an industry built around "prime plus" offers for decades. Any transition is planned to include legal safe-harbour provisions protecting existing contracts.
Source: South African Reserve Bank
Frequently Asked Questions
Will my current home loan interest rate suddenly change because of this?
No — any transition is planned to include legal safe-harbour provisions for existing contracts specifically to avoid disrupting current borrowers.
Why does the spread between repo and prime stay fixed at 3.5%?
A 2026 industry study found no compelling reason to change the fixed 3.5% spread that's been in place since 2001.
When would this change actually take effect?
The SARB has said a transition would only happen after the separate Jibar benchmark cessation process is complete, so there's no fixed date yet.