Affording a bond

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DrewChan

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Does anyone know how banks calculate affordibility these days
I have approx 7k after "All" other expenses are met- can get that up to 9k by June next year (Paying off debt).

Think its time I look at getting an apartment.
 
DrewChan said:
Does anyone know how banks calculate affordibility these days
I have approx 7k after "All" other expenses are met- can get that up to 9k by June next year (Paying off debt).

Think its time I look at getting an apartment.
Click to expand...

I think it's something like the bond payment can't be more than 30% of your salary.
 
+- 33% of your gross, less any current debt payments you currently make.
 
Slootvreter said:
That was my plan, to pay off my car and keep driving it and buy a house. And then I totalled my car. Had that happened after I bought property, I would not have been able to afford a car now. Bleh.
Click to expand...

No insurance?
 
DrewChan said:
Does anyone know how banks calculate affordibility these days
I have approx 7k after "All" other expenses are met- can get that up to 9k by June next year (Paying off debt).

Think its time I look at getting an apartment.
Click to expand...

My not so scientific method is I take my left over monthly income multiply by 100 and that is the price of the house I can afford... roughly... bearing in mind you will probably have to pay a 10% deposit once your finance is approved and rates and levies every month.
 
yeah I use the 1% of properties value per month not accurate but close. The *33% of salary I was interested in - and so it works on gross less debt.

Interesting

PS I will do ChocolateBadger
PPS I have been well behaved Qwiksilver - I have not started a new car thread
PPS Looking at Mazda mx5 2007 +
 
DrewChan said:
yeah I use the 1% of properties value per month not accurate but close. The *33% of salary I was interested in - and so it works on gross less debt.

Interesting

PS I will do ChocolateBadger
PPS I have been well behaved Qwiksilver - I have not started a new car thread
PPS Looking at Mazda mx5 2007 +
Click to expand...

Just check most places told me they use 30% not 33%, might not sound like much, but it made a slight difference in what I could qualify for. As long as you have more than the 30% left over after expenses and car repayments you should be golden. (When I applied I added the car payment to expenses and they did not deduct from my gross)
 
Here is an easy to use Calculator, which I used to estimate:
https://www.fnb.co.za/calculators/my-max-bond.html

When I signed up to get my bond, they told me they look at one of the following two, whichever is the lowest:
- 30% of your monthly income
- monthly income minus all expenses (so if this is lower than 30% of your monthly income, that is what they will go on)
 
These days you don't always need a deposit although it will make a difference in your monthly payments if you do have one.
 
Also isn't there some First Time home buyer law where you also don't require a deposit?
 
I wonder why its limited to 30%- I can easily afford to pay 50% and have enough to live and meet any obligations that may arise. Ho Hum no beachfront apartments just yet
 
I'm in the process of getting a place. The bond originator told me it's 30% of your gross with a maximum of 4 open bonds on your name.

I currently have a bond open with ABSA for about R80k, applied for another with ABSA for R619k (putting a deposit of R75K) and they gave me 100% bond at 8%.

Apparently FNB is giving away 100% bonds at the moment (apparently the banks leniency comes and goes depending on their finanacials and the mood of the bond agents that day at the bank)
 
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