Typically, in South Africa, banks will qualify you for a home loan repayment of up to 30% of your collective and joint monthly household income (in other words, your total joint income before tax and expenses). This ensures that banks adhere to responsible credit lending as mandated by the National Credit Act of South Africa.

Furthermore; banks will also look at your net monthly income, deduct your total monthly expenses, to establish if your disposable income will cover the monthly repayments of the home loan.

We have created this easy-to-use calculator to see what your estimated home loan will amount to per month. Set the interest to the current prime lending rate.

 

The interest rate will vary, based on your credit profile (it might be higher or lower, depending on the bank’s decision). Remember, a small change in your interest rate can have a huge impact on your final home loan amount. It is very important to keep this in mind when estimating the amount for which you qualify.