Guide to Home Loans in SA

New Home loans: how much can I afford?

Determining the right price range is an essential first step to avoid wasting time looking at unsuitable properties while prices spiral.
If you intend selling your home to upgrade, ask a mortgage originatorfor a valuation to give you an idea of how much you can invest in a new property.

A home loans consultant will take you through the exercise of establishing what you can afford, taking into account your specific financial requirements.

25% – 30% of Joint Income

Monthly repayment affordability is generally around 25% to 30% of joint gross income, but other criteria may affect the loan a bank will grant.
Remember that hidden costs (transfer, bond registration fees) usually have to be paid upfront, and add substantially to the cost. New developments, however, sometimes include transfer costs in the purchase price.

Home Loans – Lending Criteria :
Bond applications may be declined for several reasons: you may not be able to afford the monthly repayments, or may require a 100% loan that would push the repayments beyond your reach.

Another critical consideration is your credit profile, which determines your credit risk to the bank. This includes your current income, employment history and consumer bureaux results, which provides your debt and payment history.
If the bank considers you a good credit risk, it will assess the value of the property to be purchased. If this too meets all relevant criteria, the loan is usually granted.


  • Requirements
  • Getting the best interest rate
  • Fixed or Variable Interest Rates
  • Deposit Size

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