Want a R2 million bond? You'll need to earn about R67 700 a month
At prime of 10.75%, a R2 million bond over 20 years costs about R20 305 a month, so you'll need to earn about R67 700 before tax. Here's the income needed for bonds from R1 million to R3 million.
To qualify for a R2 million bond over 20 years with no deposit, you'll need to earn about R67 700 a month before tax. That's because the repayment at today's prime rate of 10.75% is about R20 305, and banks generally won't let a bond repayment take more than 30% of your gross income (The South African, Standard Bank).
Prime has been 10.75% since the Reserve Bank's 25 basis point hike in September (SARB). The next rate decision is on Thursday, 19 November, so these numbers could change within days (Reported).
How much do I need to earn for my bond?
| Bond amount | Repayment over 20 years | Income needed (20 years) | Repayment over 30 years | Income needed (30 years) |
|---|---|---|---|---|
| R1 million | R10 152 | R33 841 | R9 335 | R31 116 |
| R1.5 million | R15 228 | R50 761 | R14 002 | R46 674 |
| R2 million | R20 305 | R67 682 | R18 670 | R62 232 |
| R2.5 million | R25 381 | R84 602 | R23 337 | R77 790 |
| R3 million | R30 457 | R101 523 | R28 004 | R93 348 |
These are Reported's calculations at prime (10.75%) for a 100% bond, with income needed worked out as the repayment divided by 30%. Prime from SARB; 30% limit from Standard Bank and Old Mutual. Your bank may offer a rate above or below prime.
Why do banks use 30% of my gross salary?
It's the cap most lenders apply. Standard Bank's calculator works out your repayment "up to a maximum of 30%" of gross monthly income (Standard Bank), and Old Mutual says your monthly bond repayment generally may not exceed 30% of gross income (Old Mutual).
Gross income isn't the only test. ooba says the repayment also can't be more than your net surplus income, meaning your take-home pay minus your monthly expenses (ooba). Banks also look at your existing debt and credit record, so earning the amount in the table doesn't guarantee approval (The South African).
Does a 30-year bond make it easier to qualify?
Yes, a little. Stretching a R2 million bond from 20 to 30 years cuts the repayment by about R1 635 a month, so the income you need drops by about R5 450.
You pay for it later. Over 20 years, total repayments on R2 million come to about R4.87 million. Over 30 years, they come to about R6.72 million, roughly R1.85 million more in interest (Reported's calculations at 10.75%).
What if rates go up on 19 November?
If the Reserve Bank hikes by 25 basis points, prime moves to 11%. A R2 million, 20-year bond would then cost about R20 644 a month, R339 more than now, and you'd need to earn about R68 800 to qualify (Reported's calculations). A hold would leave the table as it is.
How can I qualify for a bigger bond?
ooba suggests paying off short-term debt, not applying for new credit before your bond application, paying all accounts on time, saving a deposit and applying jointly with a partner to combine incomes (ooba). A deposit lowers the loan amount, which brings both the repayment and the income needed down.
FAQ
How much must I earn for a R2 million bond in South Africa?
About R67 700 a month before tax for a 20-year bond with no deposit at prime of 10.75%, based on a repayment of about R20 305 and the 30% of gross income limit.
How much must I earn for a R1 million bond?
About R33 841 a month before tax over 20 years, or R31 116 over 30 years, at prime of 10.75%.
What is the prime lending rate now?
Prime is 10.75% after the Reserve Bank's 25 basis point hike in September 2026. The next decision is on 19 November 2026.
Can my bond repayment be more than 30% of my salary?
Generally not. Standard Bank and Old Mutual cap the repayment at 30% of gross monthly income, and the repayment must also fit within your net surplus income.