Tools
Four numbers, one formula and a straight answer. It is not an approval, and it does not pretend to know what your bank will do.
Monthly repayment
R 14 630
An estimate on the numbers you have typed. It is not a quotation, an approval or advice. Transfer duty, bond registration and attorney fees are separate and are paid up front. Your bank decides what it lends.
Before you sign
These are paid up front, in cash, before transfer. They are the reason a deposit is not the only thing you need saved.
A tax paid to SARS on the purchase of a property above a threshold, on a sliding scale. The threshold and the brackets are revised in the Budget each year, so check the current table on the SARS website rather than an old calculator. A property bought from a VAT registered developer usually carries VAT instead of transfer duty, not both.
Paid to the attorney appointed by your bank to register the bond in the deeds office. It scales with the size of the bond, not the price of the house, so a large deposit reduces it. Your bank will give you a written quotation before you sign the loan agreement.
Paid to the conveyancing attorney appointed by the seller, to transfer the property into your name. This is separate from the bond attorney, and the two are usually different firms doing two different jobs on the same house.
The calculator uses the standard amortising loan formula, the same one every South African bank works to. The bond amount is the purchase price less your deposit. The instalment is the fixed monthly payment that clears that amount over the term at the rate you have entered.
The income figure is a rule of thumb rather than a rule. Banks generally want the instalment to sit at or under about thirty per cent of gross monthly income, and they look at what else you are repaying before they decide. Two people earning the same amount can get very different answers.
A seller takes an offer from a pre-approved buyer more seriously, and you stop wasting Saturdays on houses that were never going to work. Any branch will point you at a bond originator who does this for nothing.
