Mortgage Calculator
Work out your monthly mortgage payment and the total upfront cost of buying a home in South Africa — deposit, stamp duty, attorney and registration costs — in rand. Free, no sign-up.
Purchase Details
First-time buyers can often get a 100% bond; a 10% deposit improves the rate. A bond originator can shop your application to several banks for free.
Bonds are usually priced off the prime rate, so the instalment moves when the Reserve Bank changes rates. First Home Finance can reduce the amount you borrow.
Transfer duty is nil on the first R1.1m and rises to 13% on the highest bands. A home around R1.5m works out near 1–2% of the price overall; a new-build from a VAT developer has none.
Conveyancing attorney fees, bond registration attorney fees, Deeds Office and admin charges. On a lower-value home these are a meaningful share of the price.
Your Mortgage
Monthly Payment
R 20 686
R 2 465 000 loan · 9% · 25 years
💬 In Plain Words
To buy a home priced at R 2 900 000 with a 15% deposit, you borrow R 2 465 000 and pay about R 20 686 a month for 25 years. Over the full term you pay R 3 740 857 in interest. On the day you buy, you need R 565 500 in cash — the deposit plus stamp duty and closing costs.
Cash Needed at Purchase
Estimate for educational purposes. Not included: mortgage indemnity insurance if your deposit is small, the peril and life insurance the lender requires, and VAT on professional fees. Assumes one level-payment bond. A First Home Finance subsidy, if you qualify, reduces the amount borrowed. Have the figures confirmed by your attorney and lender before you commit.
How the Mortgage Payment Is Worked Out
👋 Simple Explanation
A mortgage is a loan secured on the property. You put down a deposit, borrow the rest, and repay it with interest over 20 to 30 years. Early on, most of each payment is interest; later, most is principal. Paying a little extra each month, or making a lump sum when you can, cuts the total interest sharply because it shortens the term.
Payment = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where L = loan amount, r = monthly interest rate (annual ÷ 12), and n = the number of monthly payments (term in years × 12).
Costs and Rules When Buying a Home in South Africa
The big upfront costs are transfer duty (nothing on the first R1.1 million, then 3% to 13% on a sliding scale above that), the conveyancing attorney's fees, the bond registration attorney's fees, and Deeds Office charges. A new home from a VAT-registered developer carries VAT in the price instead of transfer duty. First-time buyers earning up to about R22,000 a month may qualify for the First Home Finance subsidy, paid towards the deposit or used to cut the bond. Add every cost up before you decide how much you need saved.
Frequently Asked Questions
- What does it cost to buy a home in South Africa besides the price?
- On top of the deposit, the biggest item is usually transfer duty — nothing on the first R1.1 million, then a sliding scale from 3% to 13% above that (a new home from a VAT-registered developer carries VAT in the price instead). Then there are the transferring attorney's conveyancing fees, the bond registration attorney's fees, and Deeds Office and admin charges. Your conveyancer gives you a pro-forma statement before transfer.
- How big a deposit do I need for a bond in South Africa?
- First-time buyers can often get a 100% bond, but a deposit of around 10% improves your interest rate. A bond originator (ooba, BetterBond and others) can submit one application to several banks for free so you can compare offers. Your instalment usually cannot exceed about 30% of your gross income.
- What is First Home Finance (formerly FLISP)?
- A once-off government subsidy for first-time buyers with a gross household income of roughly R3,501 to R22,000 a month. It is a sliding-scale amount paid towards your deposit or used to reduce the bond, administered by the National Housing Finance Corporation. You usually apply once a bank has approved your bond in principle.