Renting has its benefits, but few things match the feeling of owning your own home. For many South Africans, that goal is finally within reach again. Lower interest rates, fairer transfer duty, and friendlier lending conditions are reshaping the property landscape for first-time buyers.
If 2024 and 2025 felt financially tight, 2026 is already looking more forgiving. Here’s what has changed, why it matters, and how renters can prepare to buy while the window is open.
The state of interest rates
The South African Reserve Bank cut the repo rate to 7.00 percent in July 2025 and held it there at its September meeting. Prime has remained steady at 10.50 percent since August 2025. The next Monetary Policy Committee meeting in November will decide whether another small cut follows, but for now, the message is stability rather than shock.
Rates are still higher than they were before the pandemic, but lower than they’ve been for most of the last two years. That stability gives first-time buyers breathing space to plan without the fear of another surprise increase.
Why this matters for affordability
A small rate change has a real effect. Every 25-basis-point cut can save roughly R170 to R350 per month on a R1 million bond, depending on the term and the buyer’s credit profile. It may not sound like much, but it adds up over 20 years. It also increases the total amount that banks are willing to lend.
While affordability calculators are only guides, they now show improved outcomes compared with 2024, when affordability was at its tightest point in a decade. Buyers who were rejected last year may find 2026 offers better odds of approval.
The 2026 transfer duty brackets
Transfer duty is often overlooked by first-time buyers, yet it can make or break affordability. The current table, effective from 1 April 2025, will carry through the 2026 tax year.
Properties up to R1,210,000 remain exempt from transfer duty. Above that level, duty rises in brackets of 3, 6, 8, 11, and 13 percent. For most entry-level buyers, this means a welcome saving compared with 2024’s threshold of R1.1 million.
Example: how much you save
Let’s say you buy for R1.2 million. Under the new brackets, you pay nothing in duty. If you bought at the same level in 2024, you would have paid close to R3,000. For a R1.5 million purchase, the saving is around R9,000. That may not sound life-changing, but when you’re trying to cover legal fees, bond registration, and moving costs, every rand counts.
Lending and credit trends
Banks have become noticeably more flexible after years of cautious lending. The rate cuts have given them confidence, and data supports it. Ooba’s Q3 2025 report showed overall bond approval rates around 84 percent, up from 77 percent the year before. BetterBond’s October 2025 summary reported that deposit requirements for first-time buyers have fallen below 8 percent on average for the first time since 2019.
What banks are looking for now
Banks are prioritising buyers who show consistency. That means stable income, low credit utilisation, and responsible financial behaviour. Even a small credit card paid off in full every month can demonstrate reliability.
Lenders also continue to favour joint applications, particularly for couples, since combined income strengthens affordability. A second applicant can be the difference between a 90 percent and a 100 percent loan offer.
Why the first half of 2026 matters
Timing makes a difference. Economic analysts expect a period of moderate growth in 2026 before inflation starts to rise again in 2027. If the repo rate drops one more time, the early months of the year will likely be the most affordable window for new entrants.
Developers, too, are reacting. Many are releasing stock built during the high-rate period of 2023–2024 and offering incentives like subsidised transfer costs or reduced deposits to move units faster.
For first-time buyers, that translates to negotiation power that was rare just a year ago.
Smart preparation for renters
If you’re renting but hope to buy soon, you can do a lot before approaching a bank.
Step 1: Strengthen your credit
Pull your credit report and check for any old or unpaid accounts. A score above 650 is generally considered healthy. If you have multiple short-term debts, aim to pay off one account entirely rather than splitting payments across several.
Step 2: Build your buffer
Even with zero transfer duty, you’ll still need funds for bond registration, attorney fees, and moving costs. As a rule, budget 3 to 5 percent of the purchase price for upfront costs. This will avoid last-minute stress once you sign the offer.
Step 3: Get prequalified early
Prequalification gives you a clear price ceiling and speeds up your bond approval once you find the right property. It also helps agents and sellers take your offer more seriously.
Step 4: Track the market
Spend a few weeks watching listings in your target suburbs. Notice which homes sell quickly and which sit for months. That’s how you’ll learn to spot genuine value.
Step 5: Start your search smart
Explore listings on ImmoAfrica.net and set up email alerts in your price range. The portal offers listings from leading estate agencies across South Africa, including new developments and investment properties.
Step 6: Learn from others
Read the full first-time buyer guide From Renting to Owning: How to Confidently Buy Your First Home in South Africa. It covers the mindset shifts and practical steps that will help you move from tenant to homeowner.
Common questions
What is the transfer duty exemption in 2026?
Properties up to R1,210,000 are exempt from transfer duty. This rule came into effect in April 2025 and continues for the 2026 tax year.
Can first-time buyers still get 100 percent bonds?
Yes, most banks still offer full bonds to qualifying buyers. Your credit score, income stability, and debt level will determine eligibility. Some lenders even provide extra support products like attorney fee assistance or bond cover.
Are more rate cuts expected in 2026?
There’s cautious optimism that another small cut may happen, but it’s not guaranteed. Plan for the current 7.00 percent repo rate and treat any future drop as a bonus.
How much should I save before buying?
Even if you qualify for a 100 percent bond, set aside at least R60,000 to R80,000 for legal and registration fees, moving costs, and initial maintenance.
The bottom line
If you are renting and ready to buy, early 2026 offers a practical window to act. Interest rates have eased, transfer duty is lighter, and lenders are competing again for first-time buyers.
The opportunity lies in preparation. Strengthen your credit, build your buffer, and get prequalified before stock tightens later in the year. Use ImmoAfrica to monitor listings, compare prices, and make your move from tenant to homeowner with confidence.
