A bond affordability calculator does not guarantee that you will be given a home loan, you still need to apply for a home loan with a bank. South African Banks usually check the below factors to calculate the home loan amount you qualify for:Īccording to Private Property, your affordability is based on around 30% of your gross monthly income and on your disposable income. How Banks Calculate Your Bond Affordability This tool is helpful because it helps you know how much your bond repayment will be before you start searching for a property. What is a bond affordability calculator? A bond affordability calculator is an online tool which uses your monthly income to calculate the maximum home loan amount that a bank could borrow you to purchase a house. Some define an Interest rate as the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. Interest Rate – The Interest rate is the rate at which the bank lends you the money to buy a property.Most bonds are over a period of 20 years, but you can choose a shorter term such as 15 years or 10 years. Repayment Term – The repayment term is the amount of time that you choose to repay the bank for the property, bond or debt obligation.Deposit Amount – A deposit amount is a sum of money which is part of the full price of the property, and which you pay when you agree to buy it.Purchase Price – The purchase price is the price of the property that a buyer is interested in buying. After entering these four factors into the bond calculator, you will be able to determine your bond repayment. What will your home loan repayments be? In order to check your bond calculator affordability, you will need to input the Purchase Price, Deposit Amount, Repayment Term and Interest Rate. How To Use Bond Affordability Calculator? Bond Calculator Repayment tool also helps you see affordability. When buying property, It is important to use a Bond Calculator so that you will know how much money you will need to pay for your bond every month. A Bond Calculator is an online tool that helps potential homeowners or home owners determine their monthly repayments on a property, the total repayment amount and the total interest you will pay.
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