Home affordability calculator
Banks usually keep your bond repayment below 30% of your gross monthly income. Here's the home that fits, and the cash you'll need on top.
You could afford a home of about
R 1 429 749
A bond of R 1 329 749 at 10,75% over 20 years, repaid at R 13 500 a month, plus your R 100 000 deposit.
Cash you'll need upfront
| Deposit | R 100 000,00 |
| Transfer duty | R 6 592,48 |
| Transfer attorney fees and Deeds Office | R 42 199,50 |
| Bond registration costs | R 44 667,75 |
| Total cash needed | R 193 459,73 |
Transfer duty applies above R 1 210 000. See the full breakdown under Transfer costs.
Stress test
If prime rises by 1%, this bond would cost R 14 411 a month, R 911 more. Banks check that you could still manage that.
How banks decide what you can borrow
Under the National Credit Act, a bank must check that you can afford the loan. A common rule is that your bond repayment should be no more than 30% of your gross monthly income, and other debt reduces what's left.
The bank also looks at your credit record, your living expenses and your job stability, so treat this as a starting estimate. A bond originator can apply to several banks at once and often gets a better rate.
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 10,75% over 20 years, no other debt.
Read the guide: How much house can you afford on your salary?