Work out the home loan value you could qualify for based on your current gross income. The bank requires a clear credit record and generally allows you a loan on which the repayments are no more than 30% of your gross monthly income.
Please ensure there are no spaces, commas, percentages or full stops in the values you enter.
Loan Affordability Calculator
Find 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 your:
- Gross Income: This is your total income before deductions like tax, medical aid, and pension
- Net Income: This is your income after all deductions
- Total Expenses: These are all your monthly expenses like car repayments, internet costs, satellite TV costs
- Interest Rate: Usually set by default to the prime lending rate. Depending on the bank’s lending criteria you may qualify for a higher or lower rate.
- 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.