Bond Affordability Calculator

South African banks use the National Credit Act (NCA) to determine how much credit you can responsibly service. The primary rule is that your total monthly debt repayments - including the new bond - must not exceed 30% of your gross monthly income.

For example, on a gross income of R50,000 per month, a bank will allow a maximum of R15,000 in total monthly debt repayments. If you already have a car repayment of R5,000, only R10,000 is available for the bond repayment - which translates to a bond of roughly R1,000,000 at current rates.

Banks also verify your net take-home pay to confirm you can actually afford the repayment after tax and deductions, and may perform a stress test at a rate 2% higher than your approved rate.

Pay down existing debt. Every rand of existing monthly debt (car, personal loan, credit card) directly reduces your available bond repayment capacity. Clearing a R3,000 car repayment can add R300,000+ to your qualifying bond amount.

Save a larger deposit. A bigger deposit reduces the loan amount and improves your qualifying rate. Banks often offer prime minus 0.5% or better to buyers with 20%+ deposits and clean credit records.

Apply jointly. A joint bond application combines both incomes, potentially doubling your affordability. Both parties become equally responsible for the debt.

Extend the loan term. A 30-year term produces a lower monthly repayment than 20 years on the same bond amount, allowing you to qualify for more - though you will pay significantly more interest over time.

30% is the maximum a bank will allow under NCA rules. Borrowing at the limit means your bond repayment consumes nearly a third of your pre-tax income, leaving limited room for rate increases or income disruptions.

At 25%, you retain a buffer of 5% of gross income - typically R2,500-R5,000 per month on average SA salaries - which can absorb a 1-2% rate increase without requiring lifestyle changes.

Over a 20-year bond, a rate increase of 1.5% adds roughly R1,200 per month to a R1,500,000 bond. If you borrowed at the 30% limit, this increase may exceed your capacity. At 25%, you have room to absorb it.

A bond originator (like ooba or BetterBond) submits your application to multiple banks simultaneously and negotiates on your behalf. They are free for the borrower - they earn a commission from the bank when your bond registers.

Research consistently shows that buyers who use bond originators receive lower interest rates than those who apply to a single bank directly. The rate difference of 0.25-0.5% compounds significantly over a 20-year term - on a R1,500,000 bond, 0.5% less interest saves roughly R155,000 over the loan term.