How affordability is estimated
The calculator applies two common lending checks and uses whichever gives the lower repayment:
- Bond repayment limit: the new bond repayment may be up to a set share of gross monthly income (30% by default).
- Total debt limit: all debt repayments together — existing debt plus the new bond — may be up to a set share of gross income (40% by default).
That maximum repayment is then converted into a loan amount at your interest rate and term, and your deposit is added.
Maximum repayment = lower of (income × bond limit) and (income × total debt limit − existing debt) Maximum bond = repayment × (1 − (1 + r)^−n) ÷ r (r = rate ÷ 12, n = years × 12) Affordable price = maximum bond + deposit
Both limits are assumptions you can change — they are lending guidelines, not laws.
Worked examples
Couple earning R45 000 a month with a R3 000 car payment
30% of R45 000 is R13 500 a month. Their total debt limit (40% less the car payment) is R15 000, so the bond limit of R13 500 applies — about R1.33 million of bond plus their R100 000 deposit.
How this is worked out
- Repayment limit (30% of income) Your assumption
- R13 500.00
- Total debt limit (40% of income) less existing debt Your assumption
- R15 000.00
- Repayment used (the lower of the two)
- R13 500.00
- Bond this repayment covers (20 years at 10.75%)
- R1 329 749
- Plus your deposit
- R100 000
- Affordable price
- R1 429 749
- 10% deposit on this priceA deposit of 10% or more usually improves the rate you are offered
- R142 975
Can I afford a R2 million home?
With a R200 000 deposit, a R1.8 million bond costs about R18 274 a month at prime, which needs a gross income of roughly R61 000 a month on the 30% guideline.
How this is worked out
- Repayment limit (30% of income) Your assumption
- R13 500.00
- Total debt limit (40% of income) less existing debt Your assumption
- R15 000.00
- Repayment used (the lower of the two)
- R13 500.00
- Bond this repayment covers (20 years at 10.75%)
- R1 329 749
- Plus your deposit
- R200 000
- Affordable price
- R1 529 749
- 10% deposit on this priceA deposit of 10% or more usually improves the rate you are offered
- R152 975
Frequently asked questions
What percentage of my salary can go to a bond?
South African banks commonly limit the bond repayment to about 30% of gross monthly income. They also look at your total debt and living expenses under the National Credit Act affordability rules, so the final amount depends on your full budget.
Does my partner’s income count?
Yes, if you apply jointly. Both incomes are combined, but so are both of your existing debts.
Will a bigger deposit help?
A deposit increases the price you can afford rand for rand, and a deposit of 10% or more often earns a lower interest rate, which also increases what your income can borrow.
Is this a pre-approval?
No. It is an estimate based on common lending guidelines. Banks also check your credit record and the property’s valuation. A bank or bond originator can give you a pre-approval.