Bond repayment & home loan calculator
Your monthly home loan repayment, total interest, and how much paying a little extra each month saves you. The rate defaults to prime (). Change it to match your quote.
How much house can I afford?
Most SA banks will only approve a bond if the repayment is no more than about 30% of your gross monthly income (yours plus your partner's if you apply jointly).
How bond repayments are calculated
Home loans in South Africa are repaid in equal monthly instalments, with interest charged monthly on the outstanding balance. The repayment is:
Repayment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the annual interest rate ÷ 12, and n is the number of months.
For the extra-payment comparison, the calculator runs the loan month by month: interest is added, your payment comes off, and it counts how many months it takes to reach zero.
Worked example: a R1.5 million home
- Purchase price R1 500 000, deposit R150 000, so the bond is R1 350 000.
- At 10.75% over 20 years, the repayment is R13 705.59 a month.
- Total interest is about R1 939 352, so you repay about R3 289 352 in total.
- To stay within the 30% guideline, you'd need a gross income of about R45 685 a month.
- Paying R1 000 extra a month clears the bond in 16 years 2 months and saves about R439 757 in interest.
Tips to save on your bond
Pay extra early. In the first years most of each repayment is interest, so every extra rand reduces capital and saves interest for the rest of the loan. On a 20-year bond even R1 000 extra a month can cut years off.
Negotiate the rate. A bond originator such as ooba or BetterBond can apply to several banks at once. Getting prime − 0.5% instead of prime saves a lot over 20 years.
Budget for once-off costs. Transfer duty, bond and transfer attorney fees can add 8% or more to the price. See the transfer duty calculator.
Frequently asked questions
What is the current prime rate in South Africa?
Prime is 3.5 percentage points above the Reserve Bank's repo rate. Most home loans are priced at prime, or slightly above or below it depending on your credit profile and deposit.
Do I need a deposit to buy a house?
Some banks offer 100% bonds to first-time buyers with good credit, but a deposit of 10% or more usually gets you a better interest rate and a lower repayment.
What is the repayment on a R1 million home loan?
At 10.75% over 20 years, a R1 000 000 bond costs about R10 152 a month. Using the 30% guideline, banks would want to see a gross household income of roughly R33 841 a month.
What else do I pay when buying a house?
Besides the deposit, budget for transfer duty, transfer and bond registration attorney fees, and Deeds Office fees. Use the transfer duty calculator to estimate the duty, and the savings goal calculator to plan your deposit.