When you start looking at property, the first question banks ask isn't what home you want. It's what you earn. Your income determines your bond size, not the other way around.
Here's how the math works, what banks actually look at, and a salary-to-bond table based on South Africa's current prime rate of 10.25%.
How do banks calculate your bond amount?
Banks start with your gross monthly income. From there, they run an affordability assessment under the National Credit Act. This looks at four things:
- Your gross monthly income
- Your existing monthly debt obligations (car payments, credit cards, store accounts)
- Your monthly living expenses
- The proposed bond repayment
The result tells the bank whether you qualify, and for how much. No two applications come out the same, because your debt and expense profile is unique.
What is the 30% rule?
The 30% rule is the most widely used benchmark for bond affordability in South Africa. It says your monthly bond repayment should not exceed 30% of your gross monthly income.
This is not a legal limit. Banks set their own thresholds. But 30% is a realistic ceiling that most lenders work within, and it gives you a useful starting point before you speak to a bank.
If you earn R40,000 per month, 30% is R12,000. That is the maximum monthly bond repayment most banks will consider.
At the current prime rate of 10.25% over a 20-year term, a repayment of R12,000 per month translates to a bond of roughly R1,222,000.
How much bond can you afford on your salary?
The table below uses the current prime rate of 10.25% and a standard 20-year term. These are estimates based on the 30% rule with no existing debt.
| Gross Monthly Income | 30% for Bond Repayment | Estimated Bond Amount |
|---|---|---|
| R15,000 | R4,500 | ~R458,000 |
| R20,000 | R6,000 | ~R611,000 |
| R30,000 | R9,000 | ~R917,000 |
| R40,000 | R12,000 | ~R1,222,000 |
| R50,000 | R15,000 | ~R1,528,000 |
| R65,000 | R19,500 | ~R1,986,000 |
| R80,000 | R24,000 | ~R2,445,000 |
Prime rate 10.25%, 20-year term, no existing debt. Your actual qualification may differ.
Every existing monthly repayment reduces this. A R4,000 car payment cuts your bond qualification by around R400,000.
What else do banks check?
Your salary is the starting point, not the final answer. Banks also assess:
Credit score. A score below 600 typically results in a declined application or a higher interest rate. Scores above 700 give you better odds and better rates.
Existing debt. Car payments, personal loans, credit cards, and store accounts all count against you. The bank deducts these from your available repayment capacity before calculating your bond amount.
Employment type. Permanent employees qualify more easily than self-employed or contract workers. If you earn commission or run your own business, expect to submit two to three years of financial statements or bank statements.
Deposit. A 10% deposit reduces the bank's risk. Some lenders offer better rates to buyers who put one down. It also means you're borrowing less, which improves your affordability ratio.
Monthly expenses. Banks look at your last three to six months of bank statements. High recurring expenses relative to income can reduce your qualifying amount.
Try the calculator
Bond Repayment Calculator
Use the Calcura bond repayment calculator to see your monthly repayment at different loan amounts and interest rates.
What about upfront costs?
The bond amount does not cover everything. You still need to budget for the costs of registering and transferring the property.
On a R1,000,000 property, expect roughly:
- Transfer duty: R0 — this property falls below the R1,210,000 exemption threshold (see our transfer duty guide for the full table)
- Bond registration costs: R28,000 to R35,000
- Transfer attorney fees: R25,000 to R35,000
Budget for 8% to 10% of the purchase price in upfront costs, on top of the bond amount. These cannot be added to the bond in most cases and need to come from savings.
How to improve your bond qualification
If the numbers do not work yet, four things move the needle:
Pay down existing debt. Reducing a R3,000 monthly car payment adds roughly R300,000 to your bond qualification at current rates.
Improve your credit score. Dispute any incorrect listings. Settle any judgments. Give yourself six to twelve months before applying.
Apply with a co-applicant. A spouse or partner's income is added to the combined affordability calculation. Both credit profiles are assessed.
Save a deposit. Even 10% signals financial discipline to the bank and reduces your monthly repayment from day one.
What to watch before you apply
The SARB Monetary Policy Committee meets on 28 May 2026. Any change to the repo rate affects your monthly repayment directly. A 0.25% cut on a R1,000,000 bond saves around R160 per month. A hike costs you the same.
If you are calculating affordability this week, use the current prime rate of 10.25% and build in some buffer for rate movements before you commit.
Related articles
- What Is Transfer Duty in South Africa?
- What Is the Prime Rate in South Africa?
- What Is the First Home Finance Subsidy?
- What Happens to Your Bond If Interest Rates Rise?
Sources: South African Reserve Bank (SARB), South African Revenue Service (SARS). Last verified: May 2026.