How much money will a bank lend me for a home loan?

By arlene | October 27, 2008

Bankers are normally conservative people and will take an objective view of your home loan application. They will be protective of the bank’s interests while ensuring that you are capable of making the monthly repayments on your home loan.

Most banks will lend you an amount equal to the repayments of 30% of your monthly income. If you are married, or buying with someone else, your joint monthly income will be taken into consideration.

It works like this:

Let’s use the example of Chris and Mary, a married couple earning a gross joint monthly income of R 15 700. (Chris earns R 8100 and Mary earns R 7 600, before deductions). The interest rate for this example is 14%.

Joint monthly income: R 15 700

30% of monthly income R 4 710

How much do I qualify for?

Find your monthly salary in the left hand column. Slide across to the column indicating the current interest rate. This will give you the amount of the home loan you qualify for, payable over a twenty year term.

Monthly salary		30% of income					Interest rate
Monthly salary		30% of income		11%		13%		15%		17%		19%
							Over a 20 year term
5	000	1	500	127	986	127	986	113 895		102 249		92	535
5	500	1	650	140	785	140	785	125	285	112	474	101	789
6	000	1	800	153	584	153	584	136	674	122	699	111	043
6	500	1	950	166	382	166	382	148	064	132	924	120	296
7	000	2	100	179	181	179	181	159	453	143	149	129	550
7	500	2	250	191	980	191	980	170	843	153	374	138	803
8	000	2	400	204	778	204	778	182	232	163	599	148	057
8	500	2	550	217	577	217	577	193	622	173	824	157	310
9	000	2	700	230	375	230	375	205	011	184	049	166	564
9	500	2	850	243	174	243	174	216	401	194	274	175	817
10	000	3	000	255	973	255	973	227	790	204	499	185	071
10	500	3	150	268	771	268	771	239	180	214	724	194	324
11	000	3	300	281	570	281	570	250	569	224	949	203	578
11	500	3	450	294	369	294	369	261	959	235	174	212	832
12	000	3	600	307	167	307	167	273	349	245	399	222	085
12	500	3	750	319	966	319	966	284	738	255	624	231	339
13	000	3	900	332	765	332	765	296	128	265	849	240	592
13	500	4	050	345	563	345	563	307	517	276	074	249	846
14	000	4	200	358	362	358	362	318	907	286	299	259	099
15	000	4	500	383	959	383	959	341	686	306	748	277	606
16	000	4	800	409	556	409	556	364	465	327	198	296	114
17	000	5	100	435	154	435	154	387	244	347	648	314	621
18	000	5	400	460	751	460	751	410	023	368	098	333	128
19	000	5	700	486	348	486	348	432	802	388	548	351	635
20	000	6	000	511	945	511	945	455	581	408	998	370	142
21	000	6	300	537	543	537	543	478	360	429	448	388	649
22	000	6	600	563	140	563	140	501	139	449	898	407	156
23	000	6	900	588	737	588	737	523	918	470	348	425	663
24	000	7	200	614	334	614	334	546	697	490	798	444	170
25	000	7	500	639	932	639	932	569	476	511	247	462	677

Possibly related posts: (automatically generated)
How much money will a bank lend me for a home loan?

Topics: Property, Residential |

2 Responses to “How much money will a bank lend me for a home loan?”

Secured Loans Says:
October 27th, 2008 at 7:57 am

Have some of the best offers of personal loans available in the UK, with guaranteed car loans, secured loans and personal loans all compared and impartially reviewed on one site. … Secured Loans
Foreclosure Financing Says:
October 27th, 2008 at 11:48 am

Generally, in judicial foreclosure, a court decrees the quantity of the borrower’s debt and gives him or her short time to pay. … Foreclosure Financing

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How much money will a bank lend me for a home loan?

2 Responses to “How much money will a bank lend me for a home loan?”

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