It is tempting to start home shopping with a property price. A more practical starting point is the amount of money you could comfortably repay each month.
Why the repayment comes first
Mortgage repayments depend on interest, term and borrowed amount. Starting with the repayment you can manage lets you estimate the loan amount it could cover at a chosen rate and term.
This does not mean a bank will lend that amount. Banks assess your debts, income, expenses, credit history and their own policies.
Remember the costs outside the instalment
Include monthly rates, levies, insurance, electricity and repairs; buying can also involve transfer duty, conveyancing fees and bond registration costs.
Try the home-loan repayment calculator with an editable interest rate and term.
Set a budget for all your housing costs
A bond instalment is not your whole home budget. Rates and municipal bills, sectional-title levies where applicable, household insurance, ongoing maintenance and initial transaction costs all require room in the plan. If you enter the maximum amount you can spare each month as the bond repayment, you may leave no space for these items.
Start with your total monthly housing budget. Subtract expected costs other than the bond, then enter the remainder as your repayment budget. The calculator uses that amount, the interest rate and the loan term to estimate how much you could borrow.
Check what a higher rate would mean
A variable interest rate can change your monthly repayment. Compare the same loan amount at today's written quotation and at a higher hypothetical rate. If a modest increase makes the plan impossible, the initial budget may be too tight. A longer term can lower the monthly instalment while increasing the total interest you pay.
Check lender requirements and your household budget
A lender will assess income, debt obligations, credit history and its own policy. This website cannot determine approval. Also consider whether you could keep covering savings, irregular expenses and other responsibilities after buying the property. Use a personal cash-flow tool such as Payday Compass alongside the home-loan calculation.
Allow for a deposit and buying costs
Suppose the calculator estimates a R1.5 million loan and you already have R300,000 available as a deposit. That suggests a R1.8 million combined amount before buying costs, but it does not mean you have R1.8 million to spend safely. Transfer and conveyancing expenses, bond-registration fees, moving costs and any required repairs may need separate cash. Keep a buffer instead of assuming every rand of savings can become a deposit.
A bank may also quote an interest rate that varies over time. Run the same payment through the calculator at an assumed higher rate to see how much less you could borrow with the same monthly budget. The output is not a bank affordability assessment and does not consider your verified income, existing debt or credit record.