It is a common misconception that you need a large deposit to get a mortgage in South Africa. You can actually get a mortgage with a deposit of as little as 3% of the purchase price. However, the size of your deposit will affect the interest rate you are offered and the amount you will need to pay each month.
The average house price in South Africa is around R1 million, so a 3% deposit would be R30 000. The minimum monthly income required to qualify for a mortgage is around R16 000. This means that you would need to earn at least R192 000 a year to afford a mortgage on an average priced home.
However, it is important to remember that these are just averages and you may be able to get a mortgage with a lower income if you have a good credit history and a large deposit. The best way to find out how much you would need to earn to get a mortgage is to speak to a mortgage broker.
It is often said that buying a home is one of the biggest financial commitments that a person can make. For this reason, it is important to know how much money you will need to have in order to secure a mortgage in South Africa.
Generally speaking, most banks will require that you have a deposit of at least 10% of the purchase price of the property in order to be approved for a mortgage. This means that if you are looking to buy a property for R1 million, you will need to have at least R100,000 saved up for your deposit.
In addition to your deposit, the bank will also take into account your monthly income when assessing your mortgage application. They will want to see that you have a regular income that is sufficient to cover the repayments on the loan.
As a general rule of thumb, you should expect to need a minimum income of R8,000 per month in order to qualify for a mortgage on a property worth R1 million. However, this is just a general guide and each bank will have their own specific requirements.
So, how much money do you need in order to get a mortgage in South Africa? To answer this question, you will need to consider your deposit and your monthly income. As a general guide, you should aim to have a deposit of at least 10% of the purchase price of the property and a monthly income of R8,000. However, each bank will have their own specific requirements, so it is always best to speak to a mortgage advisor to get an accurate idea of how much you will need.