About this calculator
A South African home loan is registered as a mortgage bond over the property — hence "bond repayment", "bond registration" and the bank "granting" a bond. Rates are variable and quoted against the prime lending rate: a good credit profile might be offered prime minus 1, a weaker one prime plus 2, and the repayment in this calculator is therefore a planning figure at the rate you enter, not a promise — when the Reserve Bank moves the repo rate, prime and your repayment follow.
The second number is the one that ambushes buyers. On top of the deposit, the buyer pays transfer duty (no duty below R1,210,000 on the current SARS table), the transfer attorney’s conveyancing fee, the bond registration attorney’s fee, Deeds Office levies and the bank’s initiation fee — typically 5–8% of the price on an ordinary purchase, all in cash, all before registration. This calculator includes them using the Law Society guideline tariff (fees are negotiable in law; the costs calculator in this section itemises every line).
How to use it
- Enter the price and your deposit — the bond is the difference. 100% bonds exist for strong applicants and first-time buyers at some banks, but they price the deposit risk into the rate.
- Set the rate as prime plus your expected margin, and the term (20 years is standard; banks go to 30).
- Tell it whether the seller is a VAT-registered developer: if so there is no transfer duty, because VAT is already inside the price.
- Read the upfront cash line before the monthly one — registration cannot happen until the conveyancer has the costs in trust.
The formula
The repayment is the standard annuity formula every South African bank uses, recalculated whenever prime moves. The costs stack is computed exactly as a conveyancer builds a statement: SARS transfer duty on the marginal bands, guideline attorney fees on both the price (transfer) and the bond amount (registration), VAT at 15% on the fees, Deeds Office levies per the gazetted schedule, and the bank initiation fee.
Worked example
A R1,800,000 home with a R180,000 deposit needs a R1,620,000 bond. At 11% over 20 years the repayment is R16,721 a month and the total interest over the term is R2,393,148 — more than the house cost, which is normal arithmetic at double-digit rates, not a bank trick. The upfront stack on the same purchase: transfer duty R21,786 (the price clears the R1.21 million tax-free band), attorney fees of R34,755 each for the transfer and the bond registration plus 15% VAT, deeds levies and the initiation fee — total costs of R111,341, so roughly R291,000 of cash all-in before the first repayment.
Sources: SARS transfer duty bands in force from 1 April 2025, Law Society of South Africa guideline conveyancing tariff effective 1 July 2026 (a guideline — fees are negotiable — plus 15% VAT), and Deeds Office levies per the gazetted schedule (GN 7180, Gazette 54225). Last updated: October 2026.
Frequently asked questions
Why is my repayment likely to change during the term?
Because South African bonds are variable-rate. Your rate is set as a margin over the prime lending rate, and prime moves one-for-one with the Reserve Bank’s repo rate. A 1-point cut on a R1.62 million bond over 20 years lowers the repayment by roughly R1,088 a month; a hiking cycle takes it the other way. Fixed rates exist but are typically offered for only 1–5 years and priced well above prime.
What is the difference between the transfer fee and the bond registration fee?
Two different attorneys do two different jobs. The transfer (conveyancing) attorney moves the property from seller to buyer at the Deeds Office and is paid by the buyer on a tariff based on the price. The bond attorney registers the bank’s mortgage bond over the property, is appointed by the bank, and is also paid by the buyer, on a tariff based on the bond amount. Both fees attract 15% VAT — and both are guideline tariffs: you may negotiate.
Can the upfront costs be added to the bond?
Only indirectly. Some banks offer "bond plus costs" products or 100%+ loans to qualifying buyers, effectively lending the costs — at a price in the rate. As standard, the conveyancer must hold the duty and fees in trust before lodgement, which means cash. FLISP subsidies (for first-time buyers earning R3,501–R22,000 a month) can be applied to exactly these costs if you qualify.
How much deposit do I actually need as a first-time buyer?
Legally, none — there is no statutory minimum deposit in South Africa, and banks regularly advertise 100% bonds to first-time buyers with strong credit. In practice a deposit improves the rate you are offered and cuts the interest bill materially at South African rates: at 11%, every R100,000 of deposit removes roughly R1,032 a month from the repayment on a 20-year bond.
What is an access bond and should I use one?
Most South African bonds are "access" facilities: extra payments into the bond reduce the balance interest is charged on (interest is calculated daily) and can be withdrawn again. At double-digit rates, parking savings in the bond earns you the bond rate, tax-free and risk-free, instead of a deposit rate — usually the single best use of spare cash for a South African borrower. Model any lump sum as a shorter effective term in this calculator.
What formula does this bond repayment calculator — south africa calculator use?
Monthly repayment = P × r ÷ (1 − (1 + r)^−n), r = annual rate ÷ 12, n = years × 12; upfront cash = deposit + duty + attorney fees (+ 15% VAT) + deeds levies + initiation The repayment is the standard annuity formula every South African bank uses, recalculated whenever prime moves. The costs stack is computed exactly as a conveyancer builds a statement: SARS transfer duty on the marginal bands, guideline attorney fees on both the price (transfer) and the bond amount (registration), VAT at 15% on the fees, Deeds Office levies per the gazetted schedule, and the bank initiation fee. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.