Mortgage Affordability Calculator
How much house can you afford based on your income and debts?
// 1/3 Rule (South Africa)
South African banks generally approve a home loan where the monthly repayment does not exceed one-third (33.3%) of your gross monthly salary, minus existing debt obligations. This is stricter than the US DTI approach.
// DTI Ratio (US / International)
The Debt-to-Income ratio measures total monthly debts (including housing) as a percentage of gross income. US lenders typically cap this at 36%, with some allowing up to 43% for qualified borrowers.
// Down Payment / Deposit
A larger deposit reduces your loan amount and monthly repayment. In South Africa, banks may finance up to 100% but a 10-20% deposit secures better rates. In the US, 20% avoids PMI (Private Mortgage Insurance).
// Interest Rates
The SA prime lending rate is currently around 11.5% (linked to the repo rate). US mortgage rates sit around 6.5%. Even a 0.5% difference dramatically affects total cost over 20-30 years.
// Loan Term
In South Africa, home loans (bonds) max out at 20 years. In the US, 30-year fixed mortgages are standard. A longer term means lower monthly payments but significantly more interest paid overall.
// Be Conservative
Just because you qualify doesn't mean you should spend the maximum. Factor in rates and levies, maintenance (budget 1% of property value per year), utilities, and keep an emergency fund of 3-6 months of expenses.
// Additional Costs (SA)
Don't forget transfer duty (use the Stamp Duty Calculator), bond registration fees (R20-40k typically), conveyancing attorney fees, and moving costs. These can add 8-10% to the purchase price and are not financed.
// Pre-Approval
Getting pre-approved gives you a clear budget and strengthens your offer. In SA, apply through multiple banks or use a bond originator like ooba (free service). In the US, get pre-approved from 2-3 lenders to compare rates.
// How to Use Online Mortgage Affordability Calculator
- Enter or paste your source data into the tool input.
- Click the primary action button to run Online Mortgage Affordability Calculator.
- Review the output, then copy or export your result.
// FAQ: What does Online Mortgage Affordability Calculator do?
Online Mortgage Affordability Calculator helps you how much house can you afford based on your income and debts? in your browser with instant results.
// FAQ: How do I use Online Mortgage Affordability Calculator?
Paste or type your input, choose the needed action, and copy the generated output when the result is ready.
// FAQ: Is my data safe when using Online Mortgage Affordability Calculator?
Yes. Processing runs in your browser session for this page, so your content is not uploaded by this tool workflow.
// FAQ: Can I use Online Mortgage Affordability Calculator on mobile devices?
Yes. Online Mortgage Affordability Calculator works on modern mobile browsers, so you can run it from phones and tablets.