Bond Affordability in South Africa
South African banks follow the National Credit Act when assessing home-loan applications. Your total monthly debt repayments — including the new bond — must stay within roughly 30% of your gross monthly income, or 33% of your take-home (net) pay, whichever is the more conservative limit.
This calculator uses both rules and shows you the lower of the two. Existing debt (car instalments, credit cards, store cards) is subtracted from that cap before working out how big a bond you can support. The remaining instalment is then converted back to a loan amount using the standard amortisation formula at your chosen interest rate and term.
On top of the bond itself, buying property in South Africa carries upfront costs that are paid in cash: SARS transfer duty (scaled — 0% under R1.21 million, then 3–13%), transfer attorney fees, and bond registration costs. Budget these alongside your deposit.
Frequently Asked Questions
How much home loan can I afford on my salary?
The standard SA rule is that your total monthly debt repayments shouldn't exceed 30% of your gross salary or 33% of your take-home pay — whichever is lower. On a R35,000 gross salary with no other debt, you could typically support a bond instalment around R10,000–R10,500 per month.
What is the prime rate in South Africa right now?
The South African Reserve Bank (SARB) sets the repo rate, and prime sits at roughly 3.5% above it. Banks quote home loans as "prime", "prime + 0.5%", or sometimes "prime − 0.5%" depending on your credit profile and deposit. The calculator defaults to current prime — change it to model "prime + X%" if your bank quoted you differently.
Do I need a deposit to buy a house in South Africa?
No — 100% bonds (no deposit) are available. But a 10–20% deposit reduces your monthly repayment, gets you a better interest rate, and shows the bank you're a lower risk. The big banks publish their loan-to-value pricing matrices on their websites.
What other costs come with buying a house?
The main ones: SARS transfer duty (R0 below R1.21m, then 3% rising to 13%), transfer attorney fees, and bond registration costs. On a R1.5m property you'd typically pay around R8,000 transfer duty + R20,000–R30,000 attorney fees + R15,000–R25,000 bond registration. Budget for moving costs, rates clearance, and home insurance too.
Should I take a 20-year or 30-year bond?
A longer term gives you a lower monthly repayment but dramatically more total interest. On a R1m bond at 11%, a 30-year term costs around R250,000 more in interest than a 20-year term. Most South Africans take 20-year bonds and overpay when they can afford to — paying just R500/month extra can shave 3–4 years off your term.
Planning your salary structure for a bond application? → Try our Take-Home Pay Calculator
Take-Home Calculator →