How is my monthly bond repayment calculated in South Africa?

Your repayment is worked out on the loan amount (price minus deposit), the annual interest rate, and the term, using the standard amortisation formula. At a 10.50% prime rate over 20 years, roughly every R1 million borrowed costs about R9,984 per month. A deposit or a lower rate reduces this.

How much home loan can I afford?

South African banks generally allow up to 30% of your gross (before-tax) monthly income toward a bond instalment, after subtracting your existing monthly expenses and debt, in line with National Credit Act affordability rules. Your credit score, deposit and the property valuation then shape the final offer.

How much is transfer duty on a property in South Africa?

For the 2026/27 tax year no transfer duty is payable up to R1,210,000. Above that, SARS charges a sliding scale from 3% to 13% on the value in each bracket. Buying a new build from a VAT-registered developer means 15% VAT is in the price and no transfer duty is charged.

What upfront costs do I pay when buying property?

On top of your deposit you pay transfer duty (if applicable), the transfer attorney fee, Deeds Office fees and sundries, and, if you take a bond, the bond registration attorney fee, the bond Deeds Office fee, and the bank initiation fee (capped at R6,037.50). These are paid in cash on registration and usually cannot be added to the loan.

Free tools · South Africa

Home loan & property calculators

Three quick tools for South African property: work out your monthly bond repayment, see how much you can afford, and estimate the transfer duty and upfront costs of buying. No sign-up, nothing leaves your browser.

Prime rate 10.50% · SARS transfer duty 2026/27 · Updated August 2026

Bond repayment calculator

See your monthly instalment on a home loan, how much interest you pay over the life of the bond, and what a deposit does to both.

Your loan

Adjust the figures to match your purchase.

Property price

Deposit (cash you put down)

Interest rate 10.50%

7%Prime 10.5%16%

Prime is currently 10.50%. Banks quote from prime −0.5% to prime +2%, depending on your profile.

Loan term

Monthly repayment

on a R0 bond

Loan amountR0

Total interestover the full termR0

Total repaidR0

How this works: The repayment uses the standard amortisation formula on a variable-rate bond. A tip most people miss: paying even a little extra each month, or a deposit up front, cuts the total interest sharply because SA bonds are simple-interest, calculated daily on the outstanding balance.

Deposit pays off twice

A bigger deposit lowers your monthly instalment and can earn you a better interest rate from the bank, since you are seen as lower risk.

Rate is negotiable

The quoted rate is not fixed in stone. A bond originator can shop your application to several banks at once to push the rate down.

Budget for the extras

Transfer duty, attorney and Deeds Office fees are paid in cash on top of your deposit. Use the Bond & Transfer Costs tab to size them.

Bond affordability calculator

Banks assess what you can borrow from your income, less your monthly commitments. This gives you a realistic bond size before you start house-hunting.

Your finances

Use gross (before-tax) income and your real monthly bills.

Gross monthly income (before deductions)

Co-applicant income (optional, joint bond)

Monthly expenses & debt (car, credit, policies, living)

Include debt repayments, insurance, school fees, groceries, transport — everything that goes out each month.

Interest rate 10.50%

7%Prime 10.5%16%

Loan term

Healthy

You could qualify for a bond of about

roughly a R0 property with no deposit

Total household incomeR0

Available for a bondafter your expenses, capped at 30% of incomeR0

Estimated max bondR0

How this works: Banks generally allow up to 30% of your gross income toward a bond instalment, but they subtract your existing commitments first, in line with National Credit Act affordability rules. Your credit score, employment history and the property valuation all affect the final offer, so treat this as a starting point.

Clear debt first

Every R1 000 of monthly debt repayment can cost you roughly R100 000 of bond you would otherwise qualify for. Settling small debts before you apply lifts your buying power.

A joint bond helps

Combining incomes with a spouse or partner raises the instalment the bank will allow, and splits the affordability assessment across two people.

Your score sets your rate

A strong credit record can move your rate below prime, which both lowers your repayment and raises the amount you qualify for.

Bond & transfer cost calculator

The costs that catch buyers out. These are paid in cash on registration, on top of your deposit, and cannot usually be added to the bond. Based on the SARS 2026/27 transfer duty table.

The purchase

Enter the price and your bond amount.

Property price

Bond amount (0 if paying cash)

Leave the bond at 0 for a cash purchase and the bond-registration costs fall away.

Buying from

A private/resale seller means SARS transfer duty applies. New-build from a VAT-registered developer means VAT is in the price and no duty is charged.

Estimated cash needed upfront

transfer + bond costs, excluding your deposit

SARS transfer dutyR0

Transfer attorney feeincl. 15% VATR0

Deeds Office & sundriesR0

Bond registration costsattorney, Deeds & bank initiationR0

Total upfront cashR0

2026/27 transfer duty: no duty up to R1 210 000, then a sliding scale from 3% to 13% on the value above each bracket. Attorney fees follow Law Society guideline tariffs and vary by firm; the bank bond-initiation fee is capped at R6 037.50. These are careful estimates for budgeting — your conveyancer gives the binding figure.

Under R1.21m? No duty

Properties at or below R1 210 000 attract zero transfer duty for every buyer. It is the single biggest saving for first-time buyers.

Duty or VAT, never both

Buy a new build from a developer and the 15% VAT is already in the price, so no transfer duty is added on top.

Costs come in cash

Transfer and bond costs are due on registration and usually can't be bonded. Budget them alongside your deposit, not inside the loan.

VAT registration checker

Not sure whether to register for VAT, stay registered, or deregister? Answer four quick questions and get a clear, reasoned answer, based on the thresholds effective 1 April 2026. Then use the calculator below to add or remove 15% VAT on any amount.

Should you register for VAT?

Question 1 of 4

What is your turnover over the last 12 months?

Your taxable supplies, that is normal sales of goods and services. Exclude exempt income like residential rent or interest. A rough figure is fine.

Tip: if you are not yet trading, enter what you realistically expect over the next 12 months.

Question 2 of 4

Are you already registered for VAT?

This changes whether we look at registering versus staying registered or deregistering.

Question 3 of 4

Who are most of your customers?

This is the single biggest factor. VAT-registered customers can claim back the VAT you charge, so it costs them nothing. Consumers cannot.

Question 4 of 4

How much VAT do you pay on your own purchases?

Your "input VAT", the 15% on stock, equipment, and supplies you buy. If you register, you can claim this back.

This checker gives general guidance based on the SARS VAT thresholds effective 1 April 2026. It is not formal tax advice, confirm with a registered tax practitioner before you register or deregister.

Add or remove 15% VAT

Already registered, or planning your prices? Work out the VAT on any amount in seconds.

Amount excluding VAT

Amount excluding VATR0.00

VAT at 15%R0.00

Amount including VATR0.00

Compulsory over R2.3m

You must register within 21 days once taxable supplies pass R2.3 million in any 12-month period. The threshold rose from R1m on 1 April 2026.

Voluntary from R120k

Between R120 000 and R2.3 million, registration is your choice. It usually pays off when your customers are VAT-registered or your input VAT is high.

Deregistering is optional

Now below R2.3m after the change? You do not have to deregister, and there are good reasons to stay. Timing matters, so ask us first.

Numbers are only the start

Let's turn these figures into a plan you can act on

Buying property is one of the biggest financial decisions you'll make. Book a free, no-pitch discovery call and we'll help you structure the purchase, understand the tax, and buy with confidence.

Prefer to talk now? Call 073 975 1415