20-year or 30-year bond: which is better? (prime 10,75%)
Figures for the 2026/27 tax year. Prime rate checked 9 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
A longer bond lowers your monthly repayment, which can help you qualify for a bigger home. But it costs far more in interest. Here's the trade-off at today's prime rate.
A R 1 500 000 bond at 10,75%
| Term | Monthly repayment | Total interest | Income needed |
|---|---|---|---|
| 20 years | R 15 228 | R 2 154 824 | R 50 761 |
| 25 years | R 14 431 | R 2 829 417 | R 48 105 |
| 30 years | R 14 002 | R 3 540 799 | R 46 674 |
Income needed: the gross monthly income at which the repayment is 30% of income, a common bank limit.
The trade-off
Thirty years instead of twenty saves R 1 226 a month, but adds R 1 385 975 in interest over the life of the bond. The lower repayment can be the difference between qualifying or not, especially for first-time buyers.
The best of both
You can take a 30-year bond for the lower required repayment, then pay in extra whenever you can. Paying the 20-year amount on a 30-year bond clears it in about 20 years, and the lower minimum is there as a fall-back in a tight month. See what extra payments save.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
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