Bond affordability calculator
How big a bond your income supports at today’s prime rate (10.75%), worked out the way South African banks start: the repayment may be at most 30% of your gross monthly income.
How it’s worked out
Banks generally limit the bond repayment to about 30% of gross monthly income, after your other debt repayments. That repayment, at the rate and term you choose, sets the largest bond: repayment × (1 − (1 + r)−n) ÷ r.
The bank’s full assessment also weighs your living expenses, credit record and the property itself, so treat this as a starting point.
For planning only, not financial advice. Banks, bond originators and conveyancers will give you exact figures for your situation.