Home Buyer Readiness Calculator
Am I ready to buy a house? Get a scored readiness assessment across income, savings, debt, and credit — with a personalised action plan
Understanding the Home Buyer Readiness Score How it works • Factors • Example
How the Readiness Score Works
The Home Buyer Readiness Calculator assesses four key areas that South African banks evaluate when deciding whether to approve a home loan application. Each area is scored out of 25 points, giving a total score of 0 to 100. A traffic light indicates your status in each area: green means you are on track, amber means improvement is needed, and red means this is a critical barrier.
The four factors are: income stability (employment history and income level), savings adequacy (deposit and transfer cost savings), debt levels (debt-to-income ratio), and credit health (credit bureau score and payment history).
What the Ratings Mean
Worked Example
Nomsa earns R28,000/month gross and has been employed for 4 years. She has R120,000 saved and pays R4,500/month on a car and credit card. Her credit score is 670.
Income Stability: 25/25 (stable employment, income above threshold). Savings: 18/25 (adequate but short of 13% target). Debt: 16/25 (DTI 16%, acceptable). Credit: 20/25 (good score).
Total: 79/100 — Ready. Nomsa can apply now. Her action plan recommends topping up savings by R30,000 to cover transfer costs comfortably.
Frequently Asked Questions
What credit score do I need to buy a house in South Africa?
South African banks typically require a minimum credit score of around 600–620 to consider a home loan application, though scores below 650 may attract a higher interest rate (prime + 1% or more). A score of 700+ is considered excellent and usually secures the best rates. You can check your credit score for free at TransUnion, Experian, or ClearScore.
How much deposit do I need to buy a home in South Africa?
While 100% bonds are technically possible for first-time buyers with a strong profile, most banks recommend a 10% deposit as standard. A deposit reduces your bond amount, lowers your monthly repayment, and may secure a better interest rate. You also need to budget for transfer costs (transfer duty, conveyancing fees, bond registration) which typically add 3–5% to the purchase price.
How long must I be employed before I can get a home loan?
Most SA banks require at least 3 consecutive months of payslips and bank statements for salaried employees. Self-employed applicants need 2 years of financial statements signed by a registered accountant, plus 6 months of business and personal bank statements. Banks prefer applicants with 3+ years at the same employer as it indicates income stability. Probationary employment is a significant obstacle.
What is FLISP and do I qualify?
FLISP (First Home Finance, formerly FLISP) is a government subsidy for first-time home buyers earning between R3,501 and R22,000 per month (household income). The subsidy ranges from R27,960 to R169,264 and is paid directly to reduce your bond amount or bolster your deposit. You must be a South African citizen or permanent resident, have never owned property before, and must have an approved home loan. Apply through the National Housing Finance Corporation (NHFC).
How do I improve my home loan readiness quickly?
The fastest improvements come from: (1) paying all accounts on time for 6+ months to improve your credit score, (2) paying off high-interest short-term debt (credit cards, personal loans) to reduce your DTI ratio, (3) opening a dedicated savings account and consistently saving the maximum amount each month. Avoid applying for new credit in the 3–6 months before a home loan application, as multiple enquiries lower your credit score.