What will my home loan repayments be?
Find out how much you will need to pay every month for your dream home.
Bond Repayment CalculatorWhat 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
The 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.
