Applicant 1
R
R
Applicant 2
R
R
Loan Details
%
%
Max Property Price (Combined)
R 1 573 325
Combined income R 63 000/mo at 30% DTI
Max Bond (Combined)
R 1 415 993
Monthly Payment
R 13 900/mo
Applicant 1 Alone
R 848 917
Applicant 2 Alone
R 724 409
Buying power increase (joint vs best individual)+R 724 409
Joint and several liability: Both applicants are legally responsible for the full bond amount, not just their share. If one party defaults, the other must cover the full repayment. This applies even after divorce.

Individual vs Joint Comparison

MetricApplicant 1Applicant 2Combined
Gross Monthly IncomeR 35 000R 28 000R 63 000
Monthly DebtsR 3 000R 2 000R 5 000
Available for Bond (30% DTI)R 7 500R 6 400R 13 900
Max Bond AmountR 764 025R 651 968R 1 415 993
Max Property PriceR 848 917R 724 409R 1 573 325
Divorce implications: In the event of divorce, joint and several liability means the bond must still be paid regardless of the settlement. The property must either be sold, the bond transferred to one party (subject to re-qualification), or both parties continue paying. Consult a family law attorney before purchasing jointly.
Understanding Joint Home Loans in South Africa How to use • Formula • Example

How to Use This Calculator

Enter the gross monthly income and monthly debts for each applicant. Set the interest rate (default: prime at 10.25%), bond term, and expected deposit percentage. The calculator shows the maximum property price you can afford jointly versus individually.

Use the Payment Split tab to explore different ways to divide the monthly payment between partners.

Joint Affordability Formula

Max Monthly Payment = (Income1 + Income2) × 30% − (Debts1 + Debts2)

The combined DTI ratio is applied to the total household income. The maximum bond is then calculated by reversing the PMT formula with this monthly payment capacity.

Worked Example

Naledi earns R35,000/month with R3,000 in car payments. Her partner Thabo earns R28,000/month with R2,000 in credit card payments.

Combined income: R63,000/month. Combined debts: R5,000/month.

At 30% DTI: R63,000 × 0.30 = R18,900 available for all debts. After existing debts: R18,900 - R5,000 = R13,900/month for the bond.

At 10.25% over 20 years, this supports a bond of approximately R1,410,000. With a 10% deposit, they can afford a property up to R1,567,000.

Individually, Naledi could afford R762,000 and Thabo R555,000. Together they gain over R250,000 in extra buying power.

Frequently Asked Questions

What does joint and several liability mean for a home loan?

Joint and several liability means each applicant is individually responsible for the full bond amount, not just their share. If one person stops paying, the bank can pursue the other for the entire outstanding balance. This applies regardless of what you agree between yourselves.

What happens to a joint home loan during divorce?

Divorce does not cancel joint and several liability. The bond must either be settled (property sold), transferred to one party (who must re-qualify alone), or both parties continue paying. The divorce settlement determines who gets the property, but the bank's claim remains against both until the bond is paid off or formally transferred.

Can unmarried couples get a joint home loan in South Africa?

Yes. South African banks allow any two people to apply for a joint home loan, including unmarried couples, siblings, or friends. It is strongly recommended to have a co-ownership agreement drafted by an attorney covering exit strategies, payment responsibilities, and dispute resolution.

How do banks calculate joint affordability?

Banks add both applicants' gross monthly incomes and apply the 30% DTI rule to the total. Both applicants' existing debts are also combined. The resulting available monthly amount determines the maximum bond. Both applicants' credit scores are checked, and the lower score may affect the interest rate offered.

Does a joint bond affect both applicants' credit scores?

Yes. The bond appears on both applicants' credit reports. Late payments or defaults affect both credit scores equally. Conversely, consistent on-time payments build both applicants' credit profiles.