2026-05-21
What Income Do You Need to Qualify for a Home Loan?
Most first-time buyers work backwards — they find a property they love and then hope the bank approves them. A smarter approach is to work forwards: know your qualifying amount first, then search in that range.
How South African banks calculate affordability
Banks apply two tests and use the more restrictive result:
1. The NCA net income test
The National Credit Act requires lenders to assess your actual ability to repay. Most banks cap your total monthly debt repayments (including the new bond) at 30% of your net (after-tax) monthly income.
2. The gross income stress test
Many banks also apply a check based on gross (pre-tax) income at a stressed interest rate — typically prime + 2% — to see whether you could survive a rate increase. This usually sits between 28–35% of gross income.
The bank uses whichever test produces the lower qualifying amount.
Income qualifying table
These figures use the 30% net income rule, a 20-year term, and the likely rate of 10.75% (prime + 0.5%).
| Net monthly income | Max monthly repayment (30%) | Approx. qualifying bond |
|---|---|---|
| R15 000 | R4 500 | ~R440 000 |
| R20 000 | R6 000 | ~R590 000 |
| R25 000 | R7 500 | ~R735 000 |
| R30 000 | R9 000 | ~R880 000 |
| R40 000 | R12 000 | ~R1 175 000 |
| R50 000 | R15 000 | ~R1 470 000 |
| R70 000 | R21 000 | ~R2 060 000 |
These are estimates. Your actual qualifying amount depends on your existing debt, credit score, deposit, and the specific bank's policy. Use the calculator below for your exact number.
What income counts?
Banks will consider:
- Salary / wages — your PAYE payslip or employment letter
- Regular overtime — typically averaged over 3–6 months (some banks discount it by 50%)
- Commission — averaged over 6–12 months, often discounted
- Rental income — usually accepted at 75–80% of actual rental (vacancy buffer)
- Self-employment / business income — last 2 years of financial statements and tax assessments required
What banks won't count toward qualifying income:
- Informal or undeclared income
- Child maintenance / alimony (some banks accept it with a court order)
- Government grants
- Money from cryptocurrency or irregular sources without documented history
The monthly obligations trap
Your qualifying amount drops fast if you have existing debt. A R3,000 car instalment reduces your available repayment capacity by R3,000 — which is roughly R295,000 off your qualifying bond.
Example: R35,000 net income with R6,000 in existing monthly debt obligations.
- Affordability ceiling: 30% × R35,000 = R10,500
- Available for bond: R10,500 − R6,000 = R4,500
- Qualifying bond: ~R440,000
The same income with zero existing debt would qualify for ~R1,030,000.
Clearing debt before applying is one of the most effective ways to increase your qualifying amount.
Joint applications
Banks assess joint applications on combined income and combined obligations. If you apply with a spouse or partner:
- Combined net income: R30,000 + R25,000 = R55,000
- Affordability ceiling: 30% × R55,000 = R16,500
- Qualifying bond: ~R1,615,000
Both applicants' credit scores are assessed — the weaker score can affect the rate offered.
How a deposit changes the picture
A deposit doesn't directly increase your qualifying bond (which is determined by income), but it does:
- Reduce the loan-to-value ratio (LTV), which can unlock a better interest rate
- Allow you to buy a higher-priced property (deposit covers the gap between qualifying bond and purchase price)
- Reduce the monthly repayment on the approved bond amount
Calculate your number
Enter your income and obligations to see your exact qualifying bond — including best case, likely, and worst case scenarios.
Open Affordability Calculator →