Buying a home begins long before the keys change hands — it starts with knowing what fits your pocket. Many buyers focus on how much the bank will lend instead of what they can comfortably repay. BetterBond’s 2025 data shows the average South African home loan sits just below R1.3 million, with repayments around R13 500 per month at a prime rate of 11.75%.
A solid repayment plan keeps ownership realistic. Even a one-percent rate change can nudge your instalment up by hundreds of rand. Test your payments before you buy so you know exactly where the limits lie.
Each instalment covers two parts: interest and the chunk of capital you owe. Banks base the schedule on the SARB-linked prime rate (11.75% in 2025) over 20 or 25 years.
Example: On a R1 000 000 bond over 20 years at 11.75%, the monthly repayment is roughly R10 900. Total interest ≈ R1.6 million. Paying R500 extra each month shortens the bond by about two years and saves ± R150 000 in interest.
Banks look for stability more than size. They cap total debt at about 30 to 33% of gross income and expect a surplus after all expenses. A healthy credit score (above 610) and consistent income history often earn better rates.
Affordability checks aren’t hurdles — they’re safeguards. When your loan matches your lifestyle, your home stays sustainable.
SARB’s repo rate sits at 8.25%, pushing prime to 11.75%. Every 0.25% move shifts a R1 million bond by ± R160–R200 a month.
Budget as if rates were 1–2% higher than they are. That small buffer keeps you steady when the Monetary Policy Committee next meets.
A fixed rate keeps your repayment steady for a few years, offering certainty if you prefer predictable costs. A variable rate moves with prime; it often costs less long-term but rises and falls with the economy.
In 2025, fixed options averaged 12.25–13% for two-year terms, while variable loans averaged prime + 0.25%.
The right pick depends on your income pattern and appetite for change, not on guessing the market and hoping for the best.
Run the numbers with a property professional before you adjust anything — it’s the easiest way to see the real cost over time.
Every extra rand trims interest on the remaining balance. Paying R1 000 extra monthly on R1 million shortens the term by about four years and saves ± R290 000 in interest.
Splitting payments bi-weekly or doubling one instalment yearly has a similar effect. If your loan includes an access facility, you can still tap that money later without undoing your progress.
Paying R100 000 into a R1 million bond three years in can save roughly R240 000 in interest and knock about three years off the term. Always confirm the payment goes straight to capital and that no break-fee applies.
Access-bond clients can withdraw those funds later if needed, keeping both progress and liquidity intact.
Life happens. Rate hikes, job shifts, or medical bills can severely disrupt your financial plan. Keeping a one-to-three-month buffer in savings or an access-bond account buys you time to recover without missing payments.
Credit-life cover strengthens that safety net. Most banks insure up to R2 million for death or disability and cover up to 12 months of income loss. Review the policy yearly to ensure it still fits your loan.
Run “rate-shock” tests at prime + 1% and + 2%. If your budget survives those figures, your bond plan can handle market swings.
Start planning before you sign. Even a 10% deposit can cut your repayment and total interest sharply. Decide upfront on your bond term and rate type so they fit your income rhythm.
Check your Offer to Purchase for clauses that affect cash flow — things like occupational rent or registration timing. If those dates overlap, you could face a month of double payments.
An experienced property professional or estate agent can line up these timelines with the conveyancer, ensuring registration, bond activation, and salary cycles work in sync.
Property professionals connect the legal and financial dots. They help you phrase an Offer to Purchase that protects your budget, time registration to avoid overlap, and negotiate from data, not emotion.
They work hand-in-hand with conveyancers to keep Deeds Office registration — usually 6–8 weeks after the offer — on track, avoiding costly delays or extra occupational rent.
They also monitor market trends so your repayment strategy adapts to where rates and prices are heading, not where they were last quarter.
Every homeowner wants stability and security. At CHA Properties, we help you reach both.
We pair market insight with legal precision to align your bond, your property, and your future.
Our experienced estate agents and property professionals assist you with every step from affordability checks to bond registration.
Contact us to find out more.
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