When it comes to applying for a home loan, South African banks will, typically, allow you to qualify for a home loan repayment of up to 30% of your joint, gross, monthly income, i.e. your total joint income before tax and expenses have been deducted. This rule ensures that banks adhere to responsible credit lending as mandated by the National Credit Act of South Africa.

The next item that banks will look at is your net monthly income minus your total monthly expenses. The banks want to see that your disposable income will cover the monthly repayments of the home loan.

Make use of our affordability calculator above to find out what your estimated home loan amount will be. We have set the default interest rate to the current prime lending rate. Based on your credit profile, South African banks may choose to give you an interest rate either higher or lower than the prime lending rate. A small change in your interest rate can have a significant impact on your final home loan amount.