South Africa Home Loan Calculator 2026: Monthly Bond Repayments
Type your loan amount, interest rate and term to see your monthly bond repayment.
Rates checked 15 Oct 2026 against official sources (listed below).
Reducing balance: interest is charged on what you still owe.
Monthly repayment
R12,183
Total interest
R1,723,859
Fees
R6,038
Total you repay
R2,929,897
| Year | Balance left |
|---|---|
| Year 1 (interest R128,127) | R1,181,934 |
| Year 2 (interest R126,086) | R1,161,828 |
| Year 3 (interest R123,815) | R1,139,450 |
| Year 4 (interest R121,287) | R1,114,544 |
| Year 5 (interest R118,474) | R1,086,825 |
| Year 6 (interest R115,343) | R1,055,976 |
| Year 7 (interest R111,858) | R1,021,641 |
| Year 8 (interest R107,980) | R983,428 |
| Year 9 (interest R103,664) | R940,898 |
| Year 10 (interest R98,859) | R893,565 |
| Year 11 (interest R93,513) | R840,885 |
| Year 12 (interest R87,562) | R782,254 |
| Year 13 (interest R80,939) | R717,000 |
| Year 14 (interest R73,568) | R644,376 |
| Year 15 (interest R65,365) | R563,548 |
| Year 16 (interest R56,235) | R473,589 |
| Year 17 (interest R46,073) | R373,470 |
| Year 18 (interest R34,764) | R262,040 |
| Year 19 (interest R22,177) | R138,025 |
| Year 20 (interest R8,168) | R0 |
Repayments use the reducing-balance method banks use for home loans. Figures exclude life and building insurance premiums, bond registration and transfer costs, and any bank valuation fee, which are separate costs on top of your monthly repayment.
About this calculator
At South Africa's current prime rate of 10.75% (as of 25 September 2026), a R1,200,000 home loan over 20 years costs about R12,183 a month, and you'd pay around R1,723,859 in interest over the full term if the rate never changed. Most banks price a home loan at prime, or at prime plus or minus a margin depending on your credit profile and deposit — put in the rate your bank actually quotes you for an accurate figure.
How it's worked out
This calculator uses the reducing-balance (amortising) method that South African banks use for home loans: interest is charged only on what you still owe, so each payment is split between interest and capital, and more of it goes to the capital as the balance shrinks. Your monthly payment stays the same for the whole term (unless the rate changes), but the interest and capital split inside it moves every month.
South Africa's prime rate is the Reserve Bank's repo rate plus a fixed 3.5% margin that banks apply to variable-rate lending, including most home loans. It moved to 10.75% on 25 September 2026, when the Reserve Bank's Monetary Policy Committee raised the repo rate to 7.25% (Absa: prime and repo rate). Banks don't have to lend at prime — your own rate depends on your credit score, income and deposit — so use this calculator with the rate on your actual offer, not just prime.
Costs this calculator doesn't include:
- Bank initiation fee: capped by the National Credit Act at R1,100 plus 10% of your loan above R10,000, up to a maximum of R5,250 excluding VAT — R6,037.50 including VAT (National Credit Act Regulations, regulation 42). Any loan over about R51,500 hits that cap, so almost every mortgage pays the full R6,037.50 as a once-off fee, usually added to the loan or paid upfront.
- Bond registration costs: a Deeds Office fee (a few hundred to a few thousand rand depending on your bond size), your bond attorney's own fee (set by the Law Society's conveyancing guideline, plus VAT), and a bank valuation fee if your bank doesn't absorb it. Together these typically run to roughly 1% to 1.5% of your bond amount (MJ Kotze Inc: bond registration costs). Get a written cost estimate from your bond attorney before you sign.
- Life cover and building insurance, which most banks require as a condition of the loan and bill separately.
Frequently asked questions
What is South Africa's prime interest rate right now?
10.75%, effective 25 September 2026, after the Reserve Bank's Monetary Policy Committee raised the repo rate by 0.25 percentage points to 7.25%. Banks price most home loans at prime, or at prime plus or minus a margin depending on your risk profile, so check the actual rate on your offer.
How much is the initiation fee on a South African home loan?
The National Credit Act caps it at R1,100 plus 10% of your loan above R10,000, up to a maximum of R5,250 excluding VAT (R6,037.50 including VAT). Any home loan over about R51,500 reaches that cap, so almost every mortgage pays the full R6,037.50 — banks can charge up to this amount, not more.
What other costs do I pay to register a bond, besides the initiation fee?
A Deeds Office registration fee, your bond attorney's fee (set by the Law Society's guideline plus VAT), and a bank valuation fee if your bank doesn't cover it. Together, budget roughly 1% to 1.5% of your bond amount, and ask your bond attorney for a written quote before you sign anything.
Does a longer loan term always mean a lower monthly payment?
Yes, but you pay more interest in total. Stretching the same R1,200,000 loan from 20 to 25 years at 10.75% drops the monthly payment from about R12,183 to about R11,545, but adds tens of thousands of rand in extra interest over the life of the loan.
Can I pay off my home loan faster to save on interest?
Yes. Because interest is charged on your reducing balance, any extra amount you pay goes straight to the capital and cuts the interest you'll pay for the rest of the term. An extra R500 to R1,000 a month on a 20-year bond can shave years off it — just check with your bank first that there's no early-settlement penalty.
Will my repayment change if the Reserve Bank changes the repo rate?
Yes, if you're on a variable rate, which most home loans are. Prime moves one-for-one with the repo rate, so your repayment changes whenever the Monetary Policy Committee adjusts it, which it reviews roughly every two months.