Higher approval rate for Homebuyers.
2025 Hits Two-Year High in Application
Ooba Home Loans, the leading home‑loan comparison service, reported a two-year high in application volumes jumped 18% and bond values granted rose 22.3%, indicating strong buyer confidence moving into higher-value properties.
Prime Rate Near Historic Lows
The South African Reserve Bank has cut the repo rate by 100 bps since September 2024, resulting in a prime rate of 10.75% as of May 29, 2025. This is the fourth consecutive cut-unlocking significant affordability for both first-time buyers and existing homeowners.
Rising Purchase Prices-With First-Time Buyers Leading
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Average national purchase price reached R1.66 million, up 2.2% Year on Year; first-time buyers average R1.25 million, up 4.5% Year on Year.
- Regional highlights: Tshwane leads with 10.5% annual growth (R1.79m), and Western Cape retains the highest average (R2.33m).
Market Trends & Sector Dynamics
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First‑time buyers made up 46.5% of applications in 2025, with over half originating from Mpumalanga, Free State, and KZN.
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Self-employed applicants also showed a significant rize.
Competitive Lending Landscape
Banks increasingly offer attractive rate discounts-Ooba secured an average of prime minus 0.55% in 2025, up from prime minus 0.52% in Dec '24. Approval rates remain strong: 83.1% nationally, peaking at 85.7% in Western Cape and 85% in Johannesburg.
What this means to you?
Great time to buy:-
1. Affordable Borrowing: Prime at 10.75%, with expectations of reaching 10.50% later this year
2. Strong Bank Appetite: Multiple banks competing for home-loan market share-expect zero-deposit options and flexible terms.
3. Ooba Advantage: One application through Ooba accesses many lenders, maximizing your chances of securing the lowest rate.
To secure your Home loan contact our In-House Bond consultant, Elias Motloung on 087 701 4727 / 061 521 9445
- We have the home to suit your Lifestyle ...
08 Jul 2025
Author Frans van Staden
