South Africa Bond Affordability Calculator

Frequently asked questions

How much home loan can I qualify for in South Africa?

Lenders usually want your total monthly debt repayments, including the new bond, to stay near 30% of gross monthly income. This tool takes 30% of your income, subtracts existing debt repayments to find the instalment you can carry, then works backwards through the amortisation formula to the loan size. The actual amount a bank approves also depends on your credit record, expenses and the National Credit Act affordability assessment.

What is transfer duty and when is it payable?

Transfer duty is a government tax levied on the purchase of immovable property in South Africa. It is paid to SARS by the buyer before the property can be transferred into the new name. For the 2025/26 tax year, no transfer duty applies on properties priced up to R1,100,000. Above that threshold, a progressive scale applies with rates rising from 3% to 13% on the portion exceeding R2,500,000.

Does the 30% guideline apply to gross or net income?

South African lenders typically apply the 30% repayment guideline to gross monthly income before tax deductions. However, banks also run a full National Credit Act affordability assessment that considers your net (after-tax) income and actual living expenses. The gross-income shortcut in this tool gives a useful planning estimate, but your actual approval may differ based on your full financial profile.

Can a larger deposit improve the home loan I qualify for?

A deposit reduces the loan amount the bank needs to provide, which lowers your required monthly instalment. A smaller instalment relative to your affordability limit means the bank faces less risk, and some lenders may approve a higher purchase price when a deposit is on the table. Most South African banks require a minimum deposit of 10% for first-time buyers, though 20% or more can secure better interest rates and improve approval chances.