Build a picture of your actual cash flow
Start with verified net household income. List existing credit repayments, everyday living expenses and irregular expenses converted to monthly amounts. Include property-related costs such as rates, levies, maintenance and insurance.
Lenders assess an applicant’s circumstances and credit record. The result from a general calculator does not establish eligibility or override an individual lender assessment.
Use an income percentage as a planning choice
The affordability tool includes an adjustable gross-income cap and compares it with your remaining cash after expenses. Its default is a scenario assumption. It is not an official bank or legal rule.
If your cash surplus is lower than the selected income cap, the surplus limits the repayment. Leaving out expenses makes the result less useful even if the displayed budget looks attractive.
Keep purchase costs and a buffer separate
A deposit reduces borrowing for the same purchase price. It does not automatically cover transfer duty, conveyancing or bond registration costs. Obtain current, itemised estimates for those costs.
Stress-test a higher rate and a lower income. Leave room for repairs or an unexpected bill after moving. Your comfortable repayment can reasonably be lower than the amount a lender is willing to offer.
Keep the purchase price and loan balance separate
For an illustrative R1 200 000 purchase with a R150 000 deposit, the balance before any financed fees is R1 050 000. That subtraction does not account for every cash amount needed to complete a purchase. Identify which costs are paid separately and which, if any, a lender agrees to finance.
Use bond affordability to explore a budget based on income and expenses. Use bond repayment when you already have a loan balance to model. The questions are different, so comparing the headline numbers without their inputs can be misleading.
Stress the household budget as well as the rate
A repayment is only one housing cost. Record utilities, rates, levies, insurance and maintenance separately using actual estimates. Check the same household income basis throughout the worksheet and avoid counting an existing repayment twice when comparing a replacement loan.
Try another rate and an expense increase as separate scenarios. A budget that balances in one smooth projection can change when income falls or a large repair arrives. The calculator's adjustable income cap is a planning assumption; a lender still performs its own assessment and decides the terms of any offer.
Sources & further reading
Educational information, not personalised financial advice. This guide was prepared for this release. Read our editorial and corrections policy.