How much home loan can I afford?

Before you start viewing homes, it pays to know what you can realistically borrow. Getting this right early saves disappointment later and helps you make a confident, well-priced offer.

The 30% guideline

As a rule of thumb, most South African banks prefer your monthly bond repayment to sit at or below 30% of your gross (before-tax) monthly income. So a household earning R40,000 a month would typically be comfortable with a repayment of around R12,000. It is a guideline, not a guarantee — your actual limit depends on the full picture below.

What the banks actually assess

• Income: your gross salary, plus reliable extras like commission, allowances or rental income.
• Expenses: existing debt repayments, living costs and other commitments — banks look at what’s left over.
• Credit record: a healthy credit score signals lower risk and helps you secure a better interest rate.
• Deposit: a deposit reduces the amount you borrow and often improves both your rate and your chance of approval.

Why your interest rate matters

Your repayment is driven by the interest rate, and your rate is set off prime — currently 10.5% — plus or minus a margin the bank decides based on your profile. Even a small difference in that margin adds up to a meaningful amount over a 20-year bond, which is exactly why it helps to have several banks competing for your application.

Get a realistic figure

An affordability or bond calculator gives you a solid estimate, but the most accurate answer comes from pre-approval, where a lender confirms what you actually qualify for. Landsdowne can arrange this for you across multiple banks at once.