How much Home Loan do I qualify for?

The question of qualifying for a bond is one that most buyers ask. Let’s explore the factors that determine how much homeloan you’ll qualify for.


Monthly Income
As you may expect your monthly income is the single most important factor that determines how much you can borrow to purchase a property.


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 about R6 000/pm to pay-off a home loan. Although you can up this amount by applying jointly with you spouse, friend or family member.

Interest Rates

The current prime interest rate also plays a big role. The lower rates are, the bigger 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
Following the credit crunch, the SA banks quickly removed their 100% homeloan offerings, but the property market has since turned and is showing signs of a good recovery. This has prompted many banks to begin offering full 100% Bonds again.
Some may even consider lending you a 110% Bond (if you earn less then 15k/pm). These 110% bonds will cover your deposit as well as your bond registration costs. Get a Home Loan – Apply Now!

Related Topics:
3 Keys to qualifying for a homeloan, plus 1 bonus
One Stop Home Loan Solution
No Deposit Home Loans

Home Loan Tools:
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Bond Calculator
Prime Interest Rate History

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9 thoughts on “How much Home Loan do I qualify for?”

  1. hi i’d like to know if i pay all my arrears from when i was unemployed, will i be able to get a homeloan, or how long should i wait before i can start applying.

  2. I want to apply for home as an individual but was in arrears with my mobile company can I still take out a home loan?

  3. I would like to buy a house I have recently cleared my truwortths account that was on areas. I had this account when I was still a student. How long do I have to wait/try to apply for a home loan?

  4. If I get granted a bond and later after Transfer and Registration has been completed, can we later make it a joint bond? what will the procedure and costs be?

  5. Also remember, your credit rating can adversely affect how much you can borrow (if you can borrow at all). It also will determine the interest rate you receive. I’m not sure if they do credit checks here but often times they will.

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