Mortgage Payment Calculator South Africa

Estimate your monthly home loan repayments and upfront legal costs for buying property in South Africa. How much you may borrow depends on the passport you hold. If you do not hold a South African passport, borrowing is normally capped at a maximum of 50% of the property’s value, so you would need at least the other half in cash.

Please note that this tool is only to be used as a rough guide. For a more detailed view of your particular requirements based on your personal financial circumstances, start your free assessment, save your progress and finish any time.

For a more detailed view of your particular requirements based on your personal financial circumstances, please click here.

How to calculate your South African bond

In South Africa, mortgages are commonly referred to as bonds or home loans. When working out your estimated monthly repayments, keep the following variables in mind.

The prime lending rate. Most home loans are calculated using the South African prime interest rate. Your own rate could be higher or lower depending on your financial profile.

Standard loan terms. The typical repayment term is 20 years (240 months), though 30-year terms are occasionally possible.

Affordability rules. Total monthly commitments, including any existing domestic mortgage, personal debt and the new overseas mortgage, generally need to sit within around 30% to 35% of net guaranteed personal earned or pension income, though this varies by country and by lender.

Mortgage requirements for non-residents in South Africa

Arranging a home loan in South Africa as an international buyer involves specific criteria. Before making an offer on a property, prepare for the requirements.

Loan-to-value limits: How much you may borrow depends on the passport you hold. South African passport holders may be able to borrow up to a maximum of 70% of the property’s value. If you hold any other passport, borrowing is normally capped at a maximum of 50%, so you would need at least the other half available in liquid cash as a deposit, and it should come from existing savings rather than from additional borrowing against a main home.

Income verification: Lenders may assess your domestic payslips, bank statements and debt-to-income ratio. On adverse credit, Simon’s position is firm: an applicant will not be able to secure a loan if they have any past adverse credit history, regardless of the circumstances. This applies across every country we cover, not only South Africa.

Understanding variable rates and the prime lending rate

Long-term fixed-rate mortgages are typically uncommon in South Africa.

The large majority of South African mortgages are variable-rate loans. This means your interest rate could move up or down whenever the South African Reserve Bank changes the prime lending rate.

Short-term fixed rates are sometimes available, though they may come with higher premiums. It is worth making sure your budget could absorb interest rate rises over the life of the loan.

Upfront costs: transfer duty and legal fees

When buying property in South Africa, you cannot usually bundle your purchase fees into the mortgage. Budget for several once-off cash expenses before finalising any agreement.

Transfer duty: A property tax payable to the South African Revenue Service (SARS). Properties valued beneath certain thresholds may be exempt, though these figures change and should be checked at the time of purchase.

Conveyancing and registration fees: You would normally pay legal fees to the transferring attorneys, to register the property in your name, and to the bond registration attorneys, to register the mortgage deed.

Deeds Office and initiation fees: Lenders typically charge a statutory initiation fee to process the loan, alongside smaller administrative fees paid directly to the government Deeds Office.

South African property is also traditionally sold voetstoots, meaning as is. We would strongly recommend taking independent legal advice and commissioning structural, pest and electrical inspections.