Interest rates are stable - but fuel is rising. What actually affects your affordability more?

South African homeowners and buyers are breathing a small sigh of relief after the South African Reserve Bank (SARB) opted to hold the repo rate steady at 6.75%. On the surface, this signals stability. Monthly bond repayments remain predictable, and for many buyers, affordability hasn’t worsened - at least on paper.

But there’s another cost quietly climbing in the background: fuel. And for many households, it may be having a bigger impact on affordability than interest rates right now.

It is not just about interest rates anymore

There’s a common assumption that rising house prices and interest rates are the main reasons affordability feels stretched. But the reality is more nuanced. According to independent economist John Loos, mortgage affordability for credit-dependent buyers is not significantly worse than it was decades ago, largely because today’s interest rates are far lower than the high levels seen in the 1990s.

In other words, from a financing perspective, buying a home today may not be as out of reach as many think. So why does it still feel harder? The answer lies in what happens beyond the bond repayment.

When a cheaper home costs more

Traditionally, buyers have been willing to move further out to get more space or better value. But in simple terms, while a home closer to work may cost more per month on a bond, the savings on a home further away might disappear as the fuel prices continue to increase.

And unlike interest rates, fuel prices are more volatile and influenced by global factors beyond local control.

One of the least discussed changes in affordability is how many things now compete for your income. Over time, household spending has expanded dramatically:

• Communication costs have surged as mobile data and connectivity have become essential

• Health, lifestyle, and convenience spending have grown significantly

• Everyday goods and services have multiplied

This means homeownership is no longer just competing with basic needs; it’s competing with an entire modern lifestyle. As the report highlights, affordability isn’t just about whether you can afford a home — it’s about whether your income can stretch across everything else as well.

This leads to location becoming a financial decision, and not just a lifestyle choice. Over time, this has become more evident in buyer activity. Demand for well-located apartments and sectional title units has risen, with greater interest in mixed-use precincts and buyers prioritising shorter commutes over bigger homes.

Smarter searching: factoring in your commute

One of the biggest mistakes buyers make is focusing only on the purchase price and the monthly bond. But affordability today is broader than that. It includes transport costs, time spent commuting, and long-term lifestyle sustainability.

When searching for a property, buyers now need to understand that the home they can afford is not just about being able to make their bond repayment each month, but also about being able to afford their home when financial pressures increase.

Therefore, when you start your property search, look at what the commute to your office will be like. Will you be stuck in heavy morning traffic on the highway? Does your route go past a school where traffic will be heavier early in the morning? Can you make use of public transportation for the whole commute or even just a part of it? Add up the costs of what you would spend on fuel or a monthly bus ticket, and look at what would happen to your budget if your fuel costs increased. 

Really sitting down and stress-testing your budget will give you a clearer picture of what you will be able to afford. Once you have that number, look at the interest rate and what increases would really do to hone in on your true affordability number.

Before choosing your next home, it may be worth asking a different question: Not “What can I afford?” but “What will this location cost me every month?” Because in today’s market, your commute might be just as important as your bond.