Knowing your credit profile is the first step towards home ownership. A good credit score improves your chances of your home loan application being approved.

Loan amount qualification:

A quick and easy calculation can show you the amount that you will be able to afford. The general rule is that the bank will allow a maximum of 30% loan repayment of your joint monthly income. This amount will be your maximum allowed monthly loan repayment.

Example:

• Total joint monthly income

• X 30% (maximum allowed by bank towards loan repayment)

• = Maximum allowed loan repayment

• Calculate your budget

By calculating your budget you will determine what amount you can afford to contribute towards your loan repayments. Do a monthly income and expenses calculation and determine what your disposable income is. In other words what the amount is that you have left after your deductions. If you are paying rent then you should not deduct the rental amount from your expenses, when you are a home owner you will not be paying rent anymore.
You can now calculate the maximum purchase price that you will be able to afford and qualify for.

Refer to the table below using your disposable income to look up your maximum purchase price:

Loan Repayment	Purchase Price (at 11% Interest Rate)	Loan Repayment	Purchase Price (at 11% Interest Rate)
R 2 250	R 217 983	R 5 400	R 523 160
R 2 400	R 232 516	R 5 700	R 552 225
R 2 550	R 247 048	R 6 000	R 581 289
R 2 700	R 261 580	R 6 300	R 610 354
R 2 850	R 276 112	R 6 600	R 639 418
R 3 000	R 290 645	R 6 900	R 668 483
R 3 300	R 319 703	R 7 200	R 697 547
R 3 600	R 348 774	R 7 300	R 726 612
R 3 900	R 377 838	R 7 800	R 755 676
R 4 200	R 406 902	R 8 100	R 784 740
R 4 500	R 435 967	R 8 400	R 813 805
R 4 800	R 465 031	R 8 700	R 842 869
R 5 100	R 494 096	R 9 000	R 871 964

*Note that the current interest rate is 10.5% and the above was calculated conservatively at 11%

Click here to find out more about the FLISP (Finance Linked Individual Subsidy Programme).


To find out more about the various housing options available in Lufhereng, please contact us on:

• 087 7000 345 and speak to one of our consultants,  or
• SMS “LUF” to 33286 and we will contact you.