ZA South Africa · Housing affordability
How much house can I afford in South Africa?
A household in South Africa with gross income of ZARa year, with ZARin savings available, can afford ...
Maximum purchase price . NCA affordability assessment
ZAR 984k
Bound by your income (30% rule) · ZAR 885k mortgage on ZAR 98k down
The two rules
South Africa has two rules. Both must be met.
Under the National Credit Act, banks assess your full financial picture. The 30% affordability cap limits your bond repayment — but without a deposit, you pay a premium rate and still need cash for transfer costs.
30%
NCA affordability cap
Monthly bond repayment should not exceed approximately 30% of gross household income. Banks conduct a full affordability assessment under the NCA, factoring in all existing debts and living expenses. Unlike European stress tests, the actual interest rate is used.
bond <= income x 0.30
10%
Recommended deposit
While 100% home loans (no deposit) ARE available from all major South African banks — a unique feature — a 10% deposit secures a better interest rate (prime minus discount), lowers your monthly repayment, and builds instant equity. We model 10% as the recommended middle ground.
deposit >= 0.10 x price
Have a property in mind?
Drop in a price and see where it fails.
Each test is independent: you need to clear both. The 30% income rule limits your monthly bond repayment; the deposit rule ensures you get a competitive rate and have cash for transfer costs.
ZAR
1 of 2 tests fail.
30% income ruleshort ZAR 122k
You have ZAR 450k/yrNeed ZAR 572k/yr
10% depositpass
You have ZAR 200kNeed ZAR 125k
The lever you can actually pull
Two ceilings. Whichever is lower wins.
With your savings fixed, the price you can afford scales linearly with income — until the deposit rule starts to bind. Above the kink, more salary will not buy you a bigger place; more savings will.
What you can affordIncome limit (5.6× gross)Total down (5× cash + pension)
Your monthly budget
What you would actually pay each month.
South Africa uses the actual rate — no stress test. Your monthly bond repayment at 10.25% over 20 years is what you qualify on and what you pay. Variable rate means this changes with SARB decisions.
Monthly headroom
0
The stress test charges you 1.0× what you will actually pay. That spread is what you have, in theory, to absorb a rate cycle, or invest, if you would rather.
Where this lands you
Median house price, by city.
Your purchase-price ceiling (drawn in cyan) cuts across the median house price in South Africa's major metros. Cities above the line are out of reach without more income or more savings.
Cape Town
ZAR 1.90M
Stellenbosch
ZAR 2.50M
Umhlanga
ZAR 2M
Johannesburg
ZAR 1.50M
Pretoria
ZAR 1.50M
Durban
ZAR 1.40M
Port Elizabeth
ZAR 1M
Bloemfontein
ZAR 900k
East London
ZAR 850k
Within reachOut of reachYour ceiling · ZAR 984k
Before you sign
This is probably the largest financial commitment of your life.
A home purchase is not just the price tag. There are significant costs on top that are not included in the affordability test above.
0-13%
Transfer duty (graduated)
Transfer duty is 0% on the first R1.1M, then 3-13% on a graduated scale above that. For a R1.8M property, expect ~R28,000 (1.6%). Plus bond registration fees (~1% of loan amount) and conveyancing attorney fees.
~1%
Bond registration + attorney fees
Bond registration costs approximately 1% of the loan amount. Add conveyancing attorney fees (R15,000-R40,000) and deeds office fees. These must be paid from savings — they cannot be financed into the bond.
R/month
Rates, levies + building insurance
Municipal rates and taxes (R1,000-R5,000/month depending on property value and municipality), body corporate levies (sectional title only), and building insurance (mandatory for bonded properties). These ongoing costs are not captured in the 30% test.
None of this means you should not buy. It means you should go in with open eyes. The affordability test tells you what you can do. Whether you should depends on your time horizon, the local market, and your alternative investments.
For scale
What else costs about ZAR 984k?
- A new Toyota Hilux 2.8 GD-6 4x4 Legend, fully loaded · ZAR 850k1.16×
- A year of private school fees for two children at a top Johannesburg school · ZAR 500k1.97×
- Sharks season tickets (premium, 2 seats) for 25 years · ZAR 375k2.62×
- A new Toyota Fortuner 2.8 GD-6 4x4 · ZAR 720k1.37×
- A gap year for your child: one year abroad including flights, accommodation, and living costs · ZAR 350k2.81×
- A full kitchen and bathroom renovation in a Sandton home · ZAR 450k2.19×
- R5,000/month invested at 8% real for 20 years (final portfolio value) · ZAR 2.90M0.34×
- A two-bedroom flat in Pretoria East · ZAR 1.20M0.82×
- A three-bedroom house in Port Elizabeth · ZAR 1M0.98×
See the full income x deposit matrix
income (down) / savings (right)
ZAR 30k
ZAR 60k
ZAR 100k
ZAR 200k
30 000/yr
ZAR 66k
income-bound
ZAR 66k
income-bound
ZAR 66k
income-bound
ZAR 66k
income-bound
50 000/yr
ZAR 109k
income-bound
ZAR 109k
income-bound
ZAR 109k
income-bound
ZAR 109k
income-bound
80 000/yr
ZAR 175k
income-bound
ZAR 175k
income-bound
ZAR 175k
income-bound
ZAR 175k
income-bound
120 000/yr
ZAR 262k
income-bound
ZAR 262k
income-bound
ZAR 262k
income-bound
ZAR 262k
income-bound
180 000/yr
ZAR 300k
savings-bound
ZAR 393k
income-bound
ZAR 393k
income-bound
ZAR 393k
income-bound
Gross income used. No insurance cost included.
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Next steps
Tools and guides to get you there.
Mortgage calculatorBuild an amortization schedule with extra payments. See total interest and how fast you pay it off.CalculateSavings goal plannerSet your down-payment target and a deadline. We back-solve the monthly savings rate you need.PlanCompound interestSee how your down-payment savings grow over time. Visualize the difference one extra year makes.ProjectBuying your first homeA step-by-step guide covering down payments, mortgage options, and the true cost of homeownership.Read
Frequently asked
Unlike most countries, South African banks (FNB, Standard Bank, Absa, Nedbank) can approve 100% home loans — meaning you borrow the entire purchase price with no deposit. This is possible when the bank's valuation meets or exceeds the purchase price and the buyer has a strong credit profile (credit score 670+, stable income, low existing debt). However, 100% bonds come at a higher interest rate (no prime discount) and you must still cover transfer duty, bond registration, and attorney fees from your own pocket — typically 5-8% of the purchase price.
Under the National Credit Act, banks must conduct a thorough affordability assessment before granting any credit. For home loans, they verify your gross income, deduct all existing financial obligations (other loans, credit cards, living expenses), and check that the proposed bond repayment fits within the remaining disposable income. The guideline is that bond repayment should not exceed ~30% of gross income, with total debt service (including all debts) below ~36%. Unlike some European countries, there is no separate stress test rate — the actual interest rate (linked to the prime rate) is used for the assessment.
The South African prime lending rate (currently 11.75%) is set by commercial banks at 3.5 percentage points above the SARB repo rate. Most home loan rates are expressed as 'prime minus X' — for example, prime minus 0.25% gives you 11.50%. Your discount depends on your credit score, deposit size, and the bank's risk appetite. With a strong profile and 10%+ deposit, discounts of prime -0.25% to prime -1.00% are achievable. With no deposit (100% bond), you typically pay prime or even prime +0.5%.
Transfer duty is a tax on property transfers, paid by the buyer. It follows a graduated scale: 0% on the first R1,100,000; 3% on R1,100,001-R1,512,500; 6% on R1,512,501-R2,117,500; 8% on R2,117,501-R2,722,500; 11% on R2,722,501-R12,100,000; and 13% above R12,100,000. For a typical R1.8M property, transfer duty is approximately R28,125 (~1.6%). First-time homebuyers under 35 get no special exemption, but the zero-rated first R1.1M means the effective rate is relatively low on entry-level properties.
Sectional title (like a flat/townhouse in a complex) means you own your unit and a share of common areas, managed by a body corporate. You pay monthly levies for maintenance, security, and insurance of common property. Freehold means you own the land and structure outright — no levies, but you bear all maintenance costs yourself. Sectional title properties are typically cheaper to buy but have ongoing levies (R1,000-R5,000+/month). Freehold gives more freedom but requires budgeting for all upkeep. Banks assess both equally for bond purposes.
South African home loans are almost exclusively variable-rate, linked to the prime lending rate. Fixed-rate bonds exist but are rare, expensive (typically 1-2% above variable), and usually only for a fixed period (2-5 years) before reverting to variable. This means your monthly repayment fluctuates with SARB repo rate decisions. When the SARB cuts rates, your payment drops — when it hikes, your payment rises. The best protection is to budget at a higher rate than current and use rate-cut windfalls to pay extra into your bond, reducing the principal faster.