How Much Home Loan Can I Qualify For? ☆ Stoor

What banks actually assess

This calculator estimates the bond — and property price — your income could support. Lenders apply their own criteria, but the assessment generally turns on four things:

1. Gross income, and its stability. Commission and variable income are usually averaged and treated more cautiously than a fixed salary;
2. Existing commitments — every loan, card, store account and vehicle instalment. Reducing these raises your capacity faster than raising income does;
3. Your credit record. This decides both whether you qualify and the margin off prime you are offered — and that margin is worth a large sum over 20 years;
4. The deposit. A meaningful deposit lowers the loan and usually improves the rate offered.

Under the National Credit Act, the affordability assessment is mandatory — a lender that grants credit without one is engaging in reckless lending.

Qualifying is not the same as affording

Lenders assess against gross income; you live on take-home. R35,000 gross is about R28,688 after PAYE and UIF — check yours in the income tax calculator.

Then apply the test that matters: can you pay the instalment in a bad month? And specifically — could you still pay it if prime rose two percentage points from today's 10.50%? Bond rates are variable, rates have moved substantially within the span of a normal term, and the household that budgeted only at today's rate is the one that struggles.

Run your amount at prime, prime +1% and prime +2% in the bond calculator before committing.

The cash you need beyond the deposit

A qualification figure is about the loan. The transaction needs its own money, in cash, around transfer:

• Transfer duty — restructured in Budget 2026, now nil below R1,210,000. Work yours out in the transfer duty calculator;
• Conveyancing fees (transferring attorney) and bond registration costs — two separate attorneys, two separate bills;
• Deeds Office fees;
• Rates and levy clearance, often several months in advance;
• Homeowner's insurance, which the lender will require, plus moving costs and immediate repairs.

Some lenders will finance costs into the bond; many will not. Ask early — assuming it can be financed is a common and expensive surprise.

Improving the answer before you apply

1. Check your credit record — free once a year. Errors are common, and correcting one can move your rate;
2. Reduce commitments, especially cards and store accounts. Closing a small facility can raise qualifying capacity more than a raise would;
3. Build the deposit deliberately — project it in the savings calculator;
4. Use a bond originator. They submit to several banks at once, usually at no cost to you, and competing offers are what produce a better margin;
5. Get pre-approval before house-hunting, so you shop with a real number and negotiate from a stronger position.

Frequently asked questions

Why is my qualifying amount lower than expected?

Usually existing commitments. Card and store-account limits count even when the balance is low, because the lender assesses what you could draw.

Do I need a deposit?

100% bonds exist, particularly for first-time buyers, but a deposit lowers the loan, improves your rate and reduces the total interest substantially. Test the difference in the bond calculator.

Does a joint application help?

Combining incomes usually raises the qualifying amount — but both parties are jointly liable for the whole debt, and both credit records are assessed. Understand that before signing.

How long is pre-approval valid?

Typically a few months, and it is an indication rather than a guarantee — the final offer depends on the property valuation too.

Should I buy at my maximum?

Rarely. Qualifying at a number does not mean living comfortably at it, and rate rises land on the maximum borrower hardest. Leave room deliberately.

Prime is currently 10.50% and moves with SARB decisions. Transfer duty bands are the restructured 2026/27 rates. Take-home figures come from this site's own PAYE engine. Qualification estimates are indicative — lenders apply their own criteria. General information, not financial advice.