New Home Loans, Bonds and Mortgages in South Africa

Banks and other South African Home Loan providers will only consider 30% of your monthly income as a bond repayment.

For example:
With a salary of R20k/pm, you can use a maximum of R6 000/pm to pay-off a home loan.

Interest Rates

The current prime interest rate also plays a big role. The higher rates are the smaller the bond amount will be.

Using our example of a R20k/pm salary, and a monthly bond repayment of R6 000:
If interest rates were at 10% you would qualify for a bond of about R600 000.
If rates were at 15.5% – R430 000
If rates were at 20.0% – R350 000

Loan Term

Although the most common loan term is 20 years, you can extend that term up to 30 years. A longer term would mean a smaller monthly repayment , and this would allow you to increase your total loan amount.

The Banks’ Lending Policy
Home loan providers are no longer offering 100% home loans. Previously, new home owners were even able to secure 108% bonds – to cover the full purchase price and the costs involved in registering the loan.