WHAT HOME CAN I AFFORD?
The
overall budget price is achieved by adding how much you can afford to borrow, to how
much you have available for your deposit.
Banks allow you to pay no more than 30% of your combined income on your monthly instalment. From this calculation the bank will arrive at a maximum loan amount for you. Add this loan amount to your desired deposit and you get the approximate range of home prices you can afford.
Also remember to look at the Costs of Buying section to determine whether you have the required cash on hand for the costs that go alongside a purchase of property.
BOND REPAYMENT
Below is a table for you to quickly calculate your bond repayment amount.
All you have to do is look at your rate and the period applicable to you and multiply that amount per thousand you are borrowing. For Example ;
If you are borrowing R500,000 at an interest rate of 9.5% over a period of thirty years –
Your calculation will be 500 x 8.41 = R4205 payment per month or ;
If you are borrowing R1200,000 at an interest rate of 8.0% over a period of 20 years –
Your calculation will be 1200 x 8.36 = R10032 payment per month.
Banks allow you to pay no more than 30% of your combined income on your monthly instalment. From this calculation the bank will arrive at a maximum loan amount for you. Add this loan amount to your desired deposit and you get the approximate range of home prices you can afford.
Also remember to look at the Costs of Buying section to determine whether you have the required cash on hand for the costs that go alongside a purchase of property.
BOND REPAYMENT
Below is a table for you to quickly calculate your bond repayment amount.
All you have to do is look at your rate and the period applicable to you and multiply that amount per thousand you are borrowing. For Example ;
If you are borrowing R500,000 at an interest rate of 9.5% over a period of thirty years –
Your calculation will be 500 x 8.41 = R4205 payment per month or ;
If you are borrowing R1200,000 at an interest rate of 8.0% over a period of 20 years –
Your calculation will be 1200 x 8.36 = R10032 payment per month.
| 15 Years | 20 Years | 25 Years | 30 Years | |
| 7.0 | 8.99 | 7.75 | 7.07 | 6.65 |
| 7.5 | 9.27 | 8.06 | 7.39 | 6.99 |
| 8.0 | 9.56 | 8.36 | 7.72 | 7.34 |
| 8.5 | 9.85 | 8.68 | 8.05 | 7.69 |
| 9.0 | 10.14 | 9.00 | 8.39 | 8.05 |
| 9.5 | 10.44 | 9.32 | 8.74 | 8.41 |
| 10.0 | 10.75 | 9.65 | 9.09 | 8.78 |
| 10.5 | 11.05 | 9.98 | 9.44 | 9.15 |
| 11.0 | 11.37 | 10.32 | 9.80 | 9.52 |
| 11.5 | 11.68 | 10.66 | 10.16 | 9.90 |
| 12.0 | 12.00 | 11.01 | 10.53 | 10.29 |
| 12.5 | 12.33 | 11.36 | 10.90 | 10.67 |
| 13.0 | 12.65 | 11.72 | 11.28 | 11.06 |
| 13.5 | 12.98 | 12.07 | 11.66 | 11.45 |
| 14.0 | 13.32 | 12.44 | 12.04 | 11.85 |
| 14.5 | 13.66 | 12.80 | 12.43 | 12.25 |
| 15.0 | 14.00 | 13.17 | 12.81 | 12.65 |
