What is the maximum legal interest rate on a mortgage in South Africa?
A home loan secured by a mortgage bond over immovable property.
Your Credit Agreement
Not sure which applies? Check your credit agreement or ask your lender.
Above the legal maximum
24% vs 19% maximum
Quoted rate compared against the Mortgage maximum (per year)
Quoted Rate vs Legal Maximum
| Figure | Rate (per year) |
|---|---|
| Your quoted rate | 24% |
| Legal maximum (Mortgage) | 19% |
Maximum = SARB Repo rate (7%) + 12 percentage points, per Regulation 42(1) Table A. This checks against today's maximum — for a loan you already signed, the cap that applied on your signing date governs, which may differ if the repo rate has moved since.
If you have concerns about a quoted or charged rate, you can verify the applicable maximum and your lender's registration status via the National Credit Regulator (NCR).
Mortgage — current maximum
| Category | Formula (Regulation 42(1) Table A) | Current maximum |
|---|---|---|
| Mortgage | repo rate + 12% | 19% per year |
Frequently asked questions
Other credit categories
If you have concerns about a quoted or charged rate, you can verify the applicable maximum and your lender's registration status via the National Credit Regulator (NCR).
This is an estimate only, not financial or tax advice, and we are not a financial services provider (FSP). Your actual figures depend on your lender or provider, and your personal circumstances.