Includes a bank service fee of R60 plus VAT at 15.0%, as per regulations effective from May 1, 2025, in accordance with the regulations and the National Credit Act.
Excludes insurance, rates, electricity, sewage, water, levies, repairs, maintenance and bank kickbacks for reward programs.
Minimum Gross Monthly Income to Qualify for the home loan: R0
Employment Status Impact: Stable employment may reduce interest rates and insurance costs.
Monthly Bond Insurance from R0 to R0
Bond insurance is also known as credit life insurance; it protects you (the borrower) by paying out the outstanding bond balance in the event of one or more of the following (depending on what you select):
Death
Disability
Critical illness
Retrenchment (job loss)
Whilst this insurance is not legally required, many home loan providers require home loan insurance to be taken out as a condition of the loan, to safeguard the bond repayments in the event of your death or other mishap. Should you die they may need to sell the property from the deceased estate to cover what is owed to you, which is a hassle they'd rather avoid (sometimes compounded by the property selling for less than what is owed). They'll try get you to use their in-house insurer, as this is a profitable sideline. Insurance rates are often not cheapest at the bank offering you the home loan; it pays to shop around. If you already have other life cover, the bank sometimes won’t insist on you taking out home loan insurance.
Premiums typically vary from 0.1% to 0.3% of the total loan amount outstanding per month, depending on the insurer and your risk profile (e.g., age, sex, whether you smoke, employment status, or have preexisting conditions); but can be greater or less than this.
Home owners cover is insurance to protect you against the property structure burning down, floods, or somehow being damaged; this is mandatory but most don't take it out with their home loan provider, as they tend to be more expensive. Unlike home loan insurance (which protects the lender/bank), homeowners insurance protects the property owner and is usually a mandatory requirement by lenders to ensure the asset securing the loan is protected. The home loan provider will check annually that you have home owners cover.
Premiums are extremely variable but are typically in a range from 0.033% to 0.05% of the property value per month (0.4% to 0.6% annually), depending on location (and whether the area is prone to flooding, wind damage, crime and earthquakes), replacement cost to rebuild your home (homes with expensive finishes will cost more to insure), security measures, your personal claims history, excess, proximity to mountains/vegetation (determines fire risk, e.g. Hout Bay and Camps Bay), property age and other risk factors (e.g. thatch-roofted houses and timber structures are seen to be more prone to fire damage); they can easily vary outside of this range too.
When you are comparing options, pay particular attention to common exclusions such as "pre-existing conditions", "wear and tear", "Defective workmanship, design or construction"; and your responsibility to "maintain your property".
Upfront costs = R0
If you do not have enough money to pay the upfront costs, you may want to set your home loan requirement equal to 108% of the purchase price, so that you borrow sufficient money to pay for the upfront costs as well as the purchase price.
Electronic Generation Fee (Incl. VAT at 15.0%): R0
FICA (Incl. VAT at 15.0%): R0
Deeds Office Searches (Incl. VAT at 15.0%): R0
Rates Clearance Fees (Incl. VAT at 15.0%): R0
Bond Cancellation fee = R4,820
When you eventually have repaid your bond, you may want to cancel it; in addition to the outstanding balance and any bank-related fees, you will have to also pay a cancellation fee to the bond cancellation attorney, as well as Deeds Office postages and VAT; the rate applicable at the time you cancel is what you'll pay).
Bond Default Insurance
This protects the lender (bank):
Used when the LTV (Loan to Value) is high (typically above 90%).
Often required by banks for low-deposit home loans.
Covers the bank if the borrower defaults, and the sale of the home doesn’t cover the loan.
The cost may be capitalised into the loan and rate quoted, or explicitly paid monthly.
Moving-in once-off costs
Refurbishing the property for the look and feel you desire; e.g. painting before you move your furniture in.
Replacing all locks and keys
Installing security infrastructure (if not adequate)
Curtains (if none)
Installing fibre (if needed)
Paying the moving company to transport your possessions to the ew property (e.g. Dude & Van, Two Men and a Truck or Prima Movers).
Don't forget
Once you purchase the property you will also need to pay for:
Insurance for the contents of the house
rates, water, sewage and electricity (either directly to the municipality or via levies).
repairs and maintenance (if you have a pool, even more so)
Period
Principal (R)
Interest (R)
Balance (R)
Disclaimer: This calculator provides estimates based on the inputs provided and general assumptions about fees, interest rates, and insurance costs as of April 06, 2025. VAT is calculated at 15.0%, effective from May 1, 2025. Actual costs may vary due to changes in regulations, lender policies, insurer quotes, or your specific circumstances. These results are for informational purposes only and do not constitute financial advice or a guarantee of loan approval. Consult a bank, bond originator, or financial advisor for accurate quotes tailored to your situation.Any fees quoted are subject to change and error; all rates and fees used in the calculators are provided as an indication only; these in no way represent a guarantee that you will be granted a home loan. While we attempt to ensure the accuracy of the calculation, we cannot be held liable for inaccuracies and mistakes. Approach a bank or a bond originator to firm up the numbers for your risk profile; the conveyancing-related fees are subject to negotiation with your chosen property transfer attorneys. Nothing on this page should be construed as advice - approach an attorney or financial adviser for advice.
Maximum home loans
Some banks allow home loans above 100% of the purchase price, so that the purchaser can cover property transfer costs and bond registration fees with the home loan. The highest we've seen allowed is 108%, but the maximum allowed will depend on your individual circumstances and the bank involved.
The monthly repayment is calculated using the formula for the present value of a loan with level monthly repayments, starting being repaid one month after the loan is made:
n = Total number of payments (ie number of months)
This formula excludes the bank's monthly service fee (R60 + VAT at 15.0%), property transfer costs, bond registration fees, insurance and municipal rates, electricity, sewage and water, maintenance costs, repairs, kickbacks from the bank's rewards program.
Banks offering home loans
The following banks have special landing pages to apply for the pre-approval of a home loan:
Investec will waive the bank serice fee for the home loan account if you pay your monthly home loan repayments by debit order from your Investec Private Bank Account.
Bank rewards programs
One of the many factors to consider is the kickbacks earned from the home loan provide0r's rewards program (if any):
You will earm at least 1 InvestecRewards Point for every R2000 of outstanding capital on your home loan