Calculate your monthly home loan repayment, transfer duty, attorney fees and total cost of buying property in South Africa.
Last reviewed: 6 September 2026 · SARS 2026/2027 tax year
Home Loan & Bond Repayment Calculator
Based on prime rate 10.5% · 2026/2027 Transfer Duty · SARS rates
Prime = 10.5% · Enter prime +/− your margin
Optional — used to show affordability ratio
Monthly Bond Repayment
R 0
Over 20 years at 10.5%
Loan Amount
R 0
Total Interest
R 0
Total Repaid
R 0
Upfront Buying Costs
Transfer Duty / VATR 0
Transfer Attorney Fees (est.)R 0
Bond Registration Fees (est.)R 0
Deeds Office FeeR 0
Bond Initiation FeeR 6,000
Total Cash Needed to BuyR 0
Affordability Check
Bond repayment as % of gross income0%
Amortisation Snapshot (Year-end Balances)
Year
Balance Owing
Interest Paid (Year)
Capital Paid (Year)
Frequently Asked Questions — Home Loans & Bonds in South Africa
As of September 2026, the South African prime lending rate is 10.5% (repo rate 7.00%, effective 28 May 2026). Banks price home loans at prime plus or minus a margin based on your credit profile. Borrowers with excellent credit and a large deposit may qualify for prime minus 0.5% to prime minus 1%, while higher-risk borrowers may pay prime plus 1% or more.
Monthly bond repayment = P × [r(1+r)^n] / [(1+r)^n − 1] where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. For example, a R1,000,000 bond at 10.5% over 20 years has a monthly repayment of approximately R9,984.
Transfer duty is a tax paid to SARS when buying property from a private (non-VAT registered) seller. Properties up to R1,210,000 are fully exempt. Above that: 3% on the portion from R1.21m to R1.663m; 6% up to R2.329m; 8% up to R2.994m; 11% up to R13.31m; then 13% on the remainder. If buying from a VAT-registered developer, no transfer duty applies — VAT is included in the purchase price instead.
Most South African banks require a 10–20% deposit. With a 20% or larger deposit you may qualify for below-prime interest rates and better loan terms. First-time buyers with strong credit profiles can sometimes obtain 100% bonds (no deposit required), though this results in higher monthly repayments and more total interest paid over the loan term.
Standard requirements include: SA ID or smart ID card, last 3 months' payslips, last 3 months' bank statements, latest ITA34 (SARS tax assessment) or proof of no tax liability, signed offer to purchase, and full property details. Self-employed applicants also need 2 years of audited financial statements or 6 months' bank statements showing consistent income.
Yes — and it is one of the best financial moves you can make. Extra payments reduce your outstanding capital directly, cutting the interest charged on future months. Even an extra R500–R1,000 per month on a R1.5m bond at 10.5% can save over R200,000 in total interest and cut 3–4 years off your term. Most SA banks allow unlimited extra payments on variable-rate bonds with no penalty.
A bond originator (such as ooba or BetterBond) submits your application to multiple banks simultaneously and negotiates rates on your behalf — at no cost to you (the bank pays their fee). They often secure better rates than applying directly, especially for first-time buyers. They also manage all the paperwork. Using a bond originator is generally recommended for most South African homebuyers.
How South African Home Loans Work (2025)
A home loan (bond) in South Africa is a long-term secured loan used to purchase property. The property serves as collateral. South African bonds are typically variable-rate — linked to the prime lending rate (currently 10.5%), which moves in line with the SARB repo rate (currently 7.00%). When the SARB cuts rates, your bond repayment decreases; when it hikes, it increases.
Monthly Repayment Formula
Your monthly bond repayment is calculated using the standard amortisation formula:
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments. For a R1,500,000 bond at 10.5% over 20 years, the monthly repayment is approximately R14,976.
Transfer Duty (2026/2027 Rates, effective 1 April 2026)
Transfer duty is a tax paid to SARS when buying property from a private seller. VAT-registered developers charge VAT instead — no transfer duty applies.
Property Value
Transfer Duty
Up to R1,210,000
0% (exempt)
R1,210,001 – R1,663,800
3% on value above R1,210,000
R1,663,801 – R2,329,300
R13,614 + 6% above R1,663,800
R2,329,301 – R2,994,800
R53,544 + 8% above R2,329,300
R2,994,801 – R13,310,000
R106,784 + 11% above R2,994,800
Above R13,310,000
R1,241,456 + 13% above R13,310,000
How Much Can I Borrow? Affordability Rules
South African banks apply an affordability assessment under the National Credit Act (NCA). The general guideline is that your bond repayment should not exceed 28–33% of your gross monthly income. Banks also assess total debt obligations — all instalments (bond, vehicle, credit cards, personal loans) should ideally not exceed 45% of gross income.
How to Qualify for a Better Interest Rate
Deposit: A 10%+ deposit reduces bank risk. A 20%+ deposit may qualify you for a prime minus rate.
Credit score: A score above 670 is good; above 740 is excellent. Check yours free via Experian or TransUnion.
Bond originator: Using ooba or BetterBond gets you rates from all major banks competitively. Free service — the bank pays.
Clean credit history: No missed payments in the past 12 months significantly improves your application.
Full Upfront Cost Breakdown
Beyond the purchase price and deposit, budget for: transfer duty, bond registration fees (attorney), transfer attorney fees, deeds office fees (est. R1,000–R3,500), and the bank's initiation fee (up to R6,037.50 incl. VAT). Our calculator includes all of these in the total "Cash at Transfer" figure.