Bond Pre-Qualification Calculator
Check if you qualify for a home loan in South Africa — instant verdict based on income, credit score, employment, and NCA affordability criteria
Areas of Concern
DTI Ratio: Your DTI is 38.6%. Banks prefer under 30%.
Understanding Bond Pre-Qualification How to use • Criteria • Example
How to Use This Calculator
Enter your gross monthly income, age, employment type and duration, credit score range, existing debt payments, deposit percentage, and the property price you are targeting. The calculator assesses your profile against standard South African bank criteria and gives you a qualification verdict: Likely Approved, Borderline, or Unlikely.
Switch to the "Improve My Profile" tab for actionable steps to strengthen your application before approaching banks. Use the Share button to save or send your results.
Key Qualification Criteria
South African banks assess bond applications using these primary criteria under the National Credit Act (NCA):
- Debt-to-Income (DTI) Ratio: Total debt repayments must be below 30% of gross income (some banks allow up to 43%)
- Minimum Income: Most banks require a minimum gross income of R15,000 per month
- Age: Bond term plus your age should not exceed 65-70 years at maturity
- Employment: Permanent employees need 6+ months; self-employed need 2+ years of financials
- Credit Score (ITC): Banks check your credit record via TransUnion, Experian, or XDS
- Deposit: While 100% bonds exist, a 10%+ deposit significantly improves approval chances
Worked Example
Thembi, aged 30, earns R45,000 per month as a permanent employee at a Johannesburg-based company where she has worked for 3 years. Her credit score is in the "Good" range (680).
She has existing debt payments of R5,000/month (car payment and credit card) and has saved a 10% deposit. She wants to buy a property for R1,400,000.
Her bond amount would be R1,260,000. At the current prime rate of 10.25% over 20 years, the estimated monthly payment is approximately R12,437.
Her DTI ratio would be (R5,000 + R12,437) / R45,000 = 38.7%. This is above the ideal 30% but within the range that some banks will approve. Verdict: Borderline — she could improve her chances by paying off her credit card debt first.
Frequently Asked Questions
What credit score do I need to qualify for a home loan in South Africa?
Most South African banks require a minimum credit score of around 580-620 for a home loan, though scores above 650 are preferred and may qualify you for better rates. With an "Excellent" score (751+), you may receive rates below prime. Check your score for free at ClearScore, MyCredit, or directly from TransUnion.
Can I get a home loan if I am self-employed?
Yes, but self-employed applicants face stricter requirements. You typically need at least 2 years of audited financial statements or tax returns, a registered business, and consistent income. Banks may average your income over 2-3 years. Commission earners usually need a 6-month average of commission income plus a base salary.
What is the maximum debt-to-income ratio for a bond in South Africa?
Under the NCA, banks must conduct an affordability assessment. The general guideline is that total debt repayments (including the proposed bond) should not exceed 30% of gross monthly income. However, some banks use different thresholds — FNB and Absa may go up to 43%, while SA Home Loans is more conservative at 38%. Your net disposable income after expenses is also assessed.
Should I use a bond originator to apply for a home loan?
Yes. Bond originators like ooba, BetterBond, and Betterhome submit your application to multiple banks simultaneously at no cost to you (they are paid by the bank). This ensures you get the best available rate and increases your chances of approval. They also help with paperwork and can advise on improving your profile.
How long does it take to get bond approval in South Africa?
Pre-approval (in-principle approval) can be obtained within 24-48 hours. Full bond approval after submitting an offer to purchase typically takes 7-14 working days. The full transfer process from offer to registration takes 8-12 weeks. Having all documents ready (payslips, bank statements, ID) speeds up the process significantly.