How much house can you afford on your salary?
Figures for the 2026/27 tax year. Prime rate checked 1 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
Most South African banks use a simple starting rule: your bond repayment shouldn't be more than 30% of your gross monthly income. Here's what that means in rands at today's prime rate of 10,75%.
What you can afford at different salaries
| Gross income per month | Maximum repayment | Home you can afford | Cash needed for costs |
|---|---|---|---|
| R 15 000 | R 4 500 | R 443 000 | R 46 000 |
| R 20 000 | R 6 000 | R 591 000 | R 54 000 |
| R 25 000 | R 7 500 | R 739 000 | R 64 000 |
| R 30 000 | R 9 000 | R 886 000 | R 69 000 |
| R 40 000 | R 12 000 | R 1 182 000 | R 80 000 |
| R 50 000 | R 15 000 | R 1 477 000 | R 97 000 |
| R 75 000 | R 22 500 | R 2 216 000 | R 157 000 |
| R 100 000 | R 30 000 | R 2 955 000 | R 228 000 |
100% bond at prime (10,75%) over 20 years, no other debt. Cash needed covers transfer duty, attorney and Deeds Office fees and bond registration.
How the calculation works
Take someone earning R 40 000 a month. 30% of that is R 12 000, the most a bank is likely to let them repay each month. At 10,75% over 20 years, that repayment supports a bond of about R 1 182 000.
They'd also need about R 80 000 in cash for transfer and bond costs, which banks don't usually finance.
Other debt reduces what you can borrow
Banks subtract your other monthly debt repayments, such as car finance, personal loans and store accounts. If our example buyer also pays R 4 000 a month on a car, their maximum bond repayment falls to R 8 000, and the home they can afford drops from R 1 182 000 to R 788 000.
A longer term buys more house, at a cost
Over 30 years instead of 20, the same R 12 000 repayment supports a home of about R 1 286 000. But you'd pay interest for ten more years, so the home costs far more in total. Not every bank offers 30-year bonds.
Leave room for rate hikes
Most bonds are linked to prime, which moves with the Reserve Bank's repo rate. If prime rose by 1%, the bond our example buyer can afford today would cost R 12 809 a month, R 809 more. Banks check that you could still cope, and so should you. At prime + 1%, the same income would only support a home of about R 1 107 000.
Income needed for common prices
| Home price | Monthly repayment | Gross income needed |
|---|---|---|
| R 1 000 000 | R 10 152 | R 33 841 |
| R 1 500 000 | R 15 228 | R 50 761 |
| R 2 000 000 | R 20 305 | R 67 682 |
| R 3 000 000 | R 30 457 | R 101 523 |
100% bond at prime over 20 years, no other debt.
What else banks look at
- Your credit record. A good record gets you approved and can earn a rate below prime.
- A deposit. Even 10% usually improves your rate and your chances of approval.
- Your living expenses, which banks must check under the National Credit Act.
- Joint applications. Buying with a partner lets the bank combine your incomes.
A bond originator can apply to several banks at once at no cost to you, which often gets a better rate.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
Work out what you can afford