What will my home loan repayments be?
Find out how much you will need to pay every month for your dream home.
Bond Repayment CalculatorFind out more about bond affordability
What is a bond affordability calculator?
When planning on buying a home, it is essential to know exactly how much you can afford before you start your property search. A bond affordability calculator uses your monthly income to determine the maximum home loan amount that you could get from a bank.
How do banks calculate my bond affordability?
Banks usually calculate the home loan amount you qualify for by looking at:
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Gross income
This is your total income before deductions like tax, medical aid and pension.
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Net income
This is your income after all deductions
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Total expenses
These are all your monthly expenses like car repayments, internet costs, satellite TV costs
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Interest rate
This is usually set by default to the prime lending rate. Depending on the bank's lending criteria you may qualify for a higher of lower rate.
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Number of years
Most home loans in South Africa are over 20 years, but you may choose a longer or shorter term.
Your affordability is ultimately based on around 30% of your gross monthly income and on your disposable income.
Remember that a bond affordability calculator is a useful tool to determine the maximum loan value and monthly repayment that you qualify for but is not a guarantee that you will be granted a home loan. You will need to apply for a home loan, and it is at the discretion of the bank to grant it or not.
