How much bond can I afford?

The 30% guideline

South African banks generally will not approve a bond if the monthly repayment is more than about 30% of your gross monthly income, that is, your income before tax and deductions. For a couple buying together, the bank can usually add both incomes.

The 30% is a ceiling, not a target. The bank also does an affordability assessment, as the National Credit Act requires: it looks at your take-home pay, your living expenses, your other debt (car finance, credit cards, store accounts, personal loans) and your credit record. Someone with a large car repayment may be offered much less than the 30% figure suggests.

What the interest rate does

Most home loans are linked to the prime lending rate. As at 25 September 2026, prime is 10.75%. Depending on your risk profile and deposit, a bank may offer you prime, a little below it or a little above it.

Because the rate moves with the Reserve Bank’s repo rate, your repayment can change during the life of the bond. As an example, a bond of R1 329 749 over 20 years costs R13 500 a month at 10.75%, and R14 411 a month at 11.75%. Leave room in your budget for a rise.

Worked examples

These use the 30% guideline, prime as at 25 September 2026, a 20-year term and a 10% deposit. They are worked out from the same formulas as our calculators, so the numbers match.

• Gross income of R25 000 a month: 30% is R7 500 a month. At prime (10.75%) over 20 years, that repays a bond of about R738 750. With a 10% deposit, that is a home of about R820 833.
• Gross income of R45 000 a month: 30% is R13 500 a month. At prime (10.75%) over 20 years, that repays a bond of about R1 329 749. With a 10% deposit, that is a home of about R1 477 499.
• Gross income of R70 000 a month: 30% is R21 000 a month. At prime (10.75%) over 20 years, that repays a bond of about R2 068 499. With a 10% deposit, that is a home of about R2 298 332.

20 years or 30?

Some banks offer bonds over up to 30 years. A longer term makes each payment smaller, so the same R13 500 a month would repay about R1 446 199 over 30 years instead of R1 329 749 over 20. The catch is the interest: over 20 years you would pay about R3 240 000 in total, over 30 years about R4 860 000, if the rate stayed the same.

If you take the longer term for a lower payment, paying in a little extra each month when you can shortens the bond and saves interest. Most bonds allow extra payments, and many let you take them back out later; ask your bank how yours works.

What improves your chances

• A deposit. Even 5% to 10% lowers your repayment and can earn you a better rate. Banks do offer 100% bonds, especially to first-time buyers, but they are stricter about who qualifies.
• A clean credit record. Pay accounts on time, close store cards you do not use, and check your credit report for free with a credit bureau before you apply.
• Lower other debt. Settling a car loan or credit card before applying frees up affordability.
• Stable, provable income. Three to six months of payslips and bank statements are typical; self-employed buyers usually need financial statements and tax returns.
• Applying through a bond originator, who submits to several banks at once and lets you compare offers.

Do not forget the other costs

The bond is not your only housing cost. Budget each month for municipal rates and taxes, water and electricity, home insurance (banks require building insurance), life cover the bank may ask for, levies in a sectional title complex, and maintenance. Before you buy you will also need cash for transfer duty and attorneys’ fees.

These figures are estimates for planning, not a quote or an approval from a bank, and not financial advice. Use the affordability calculator to try your own income, and the bond calculator to see the repayment on a particular home.