Affordability Calculator

Discover your buying power. Calculate the property price you qualify for based on your monthly income, expenses, and current interest rates.

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Buying Power Calculator

2026 Lending Criteria

This calculation assumes a Net Surplus Income check as required by the National Credit Act.

Max Monthly Repayment
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Based on 30% of your gross income.
Estimated Max Home Loan
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How are home loans calculated?

When it comes to applying for a home loan, South African banks will, typically, allow you to qualify for a home loan repayment of up to 30% of your joint, gross, monthly income (your total joint income before tax and expenses). This rule ensures that banks adhere to responsible credit lending as mandated by the National Credit Act of South Africa.

The next item that banks will look at is your net monthly income minus your total monthly expenses. The banks want to see that your disposable income will cover the monthly repayments of the home loan.

Make use of our affordability calculator above to find out what your estimated home loan amount will be. Based on your credit profile, South African banks may choose to give you an interest rate either higher or lower than the prime lending rate. A small change in your interest rate can have a significant impact on your final home loan amount.

How Home Loan Affordability is Calculated

When applying for a home loan, South African banks typically cap your monthly repayment at 30% of your joint gross monthly income (before tax and deductions). This threshold is enforced to meet responsible lending criteria under the National Credit Act (NCA) of South Africa.

Beyond gross income, banks evaluate your disposable income, your net take-home pay minus existing monthly debt commitments and living expenses. Your final loan approval depends entirely on having enough remaining cash flow to comfortably sustain the monthly installment.

Interest rates also shift buying power. Based on your risk and credit profile, banks may offer a rate above or below the prime lending benchmark. Even a 0.25% variance dramatically impacts your total qualification ceiling.

Critical Budget Note

Have You Saved for Upfront Costs?

Affordability tells you what the bank will lend you, but it doesn't cover your transaction outlays. You will still need cash ready for SARS transfer duties, conveyancing attorneys, and Deeds Office fees.

The 30% Rule

Banks generally allow a maximum of 30% of your gross monthly income to be dedicated to your home loan repayment.

Boost Your Budget

Applying with a co-applicant or increasing your deposit can significantly improve the property price you qualify for.

Get Pre-Qualified

Ready to shop? Use these results to get a formal pre-qualification certificate and strengthen your offer to purchase.