How much home can you afford?
The 30% rule banks start from, what a deposit does, and the costs on top of the price.
The starting rule
Most South African banks start from a bond instalment of about 30% of your gross monthly income, then test it against your other debts and living costs under the National Credit Act's affordability rules. Two incomes on one application are added together.
What a deposit does
A deposit lowers the bond and often the rate. First-time buyers can get 100% bonds, but a deposit of 10% or more generally improves the offer.
Costs on top of the price
Transfer duty (none on the first R1 210 000 of the price, on the current SARS table), transfer attorney fees and bond registration fees. Budget for these in cash: they are not part of the bond. The GoFund bond calculator estimates them.
Why apply to several banks
Each bank scores you differently. Applying to several through one application lets them compete on the rate, and a small difference in rate is a large difference over 20 years.
See where you stand in 60 seconds.
Check my chance of fundingNext: How to compare business finance offers
GoFund prepares and submits applications on your behalf; it is not a credit provider. Every amount, rate, turnaround and qualifying rule belongs to the finance house concerned, differs between them, and can change without notice. Only a finance house can approve credit.