By Reinier van Loggerenberg, CEO, Craft Homes
If there’s one gap I see over and over in South Africa’s housing market, it’s understanding. People want to buy. They’re tired of renting. They’ve saved something. But the moment they start looking, jargon and guesswork creep in: “How much can I really afford?”, “Why was my pre-approval less than I expected?”, “Does debt review mean I’m shut out forever?”
Good customer education is the difference between a stressful journey and a confident one. Here’s a clear, practical guide for first-time buyers and anyone re-entering the market.
1. Affordability: what banks actually look at
Affordability isn’t just the bond repayment. Lenders assess your total monthly obligation and whether your income can comfortably manage it.
You can build your own view the same way:
Net income: Your take-home pay after tax and deductions.
Existing debt: Credit cards, personal loans, vehicle finance, store accounts.
Essential living costs: Food, transport, medical aid, school fees, etc.
Property costs: Rates and taxes, levies (if sectional title), home insurance, life cover, utilities, maintenance.
Helpful hints: Aim to keep total debt repayments (including a new bond) below 35 – 40% of your net income.
Keep home-related costs predictable. If levies or rates are high, you may need a smaller bond to stay within a safe monthly number.
Stress-test interest rates. Model your repayment at +2 to +3 percentage points above today’s rate. If your budget only works at the perfect rate, it’s not robust enough.
2. How much should you spend
Start bottom-up, not top-down. Fix your monthly ceiling. Decide the maximum total housing spend you’re comfortable with (bond + rates/levies + insurance + a maintenance buffer).
Work backward. Use a bond calculator to see what loan size matches that monthly ceiling at conservative interest rates.
Don’t forget once-off costs. Transfer duty (if applicable), bond registration costs, legal fees, council deposits, moving costs, initial furniture or appliances. Many buyers budget the monthly and then get surprised by the once-offs.
A deposit changes the game. Even 5 – 10% can improve the chance of approval and the interest rate you’re offered. A lower rate compounds to big savings over time. Leave room to breathe. Life happens. Keep an emergency fund. A home should anchor your financial life, not strain it.
3. Credit score: what moves the needle
Your credit score signals reliability more than wealth. Banks are asking: do you pay on time, every time?
What helps:
On-time payments are king. Set debit orders and avoid “almost on time.”
Utilisation matters. Keep revolving debt (credit cards/store accounts) well below limits; less than 30% utilisation is a strong signal.
Don’t open lots of new accounts before a bond application.
Keep older accounts in good standing to show length of history.
Check your report with one of SA’s credit bureaus and dispute errors; it’s your right.
Once bond is secured, keep accounts maintained and don’t make big purchases as this will flag your application for review.
4. Debt review: how to speed up your comeback
Debt review is not a permanent label. Many South Africans use it to stabilise, then rebuild.
Your recovery checklist:
Finish the programme and request your clearance certificate from your debt counsellor.
Ensure all bureaus are updated – follow up until your profile reflects the clearance.
Re-establish positive behaviour with small, manageable facilities you settle in full monthly.
Maintain three to six months of clean bank statements (no unpaid items, no chronic overdraft).
Show income stability. Consistent employment and predictable deposits matter.
Banks want to lend to people who demonstrate changed behaviour. Your goal post-review is a tidy track record, not a rush.
5. Make approval easier: small moves with big impact
Reduce unsecured balances three months before applying as this boosts affordability and your score.
Avoid large discretionary spends right before the bank reviews your statements, ie loans.
Prepare documents: ID, payslips (usually 3 months), bank statements (3 – 6 months), proof of residence.
Self-employed? Keep clean management accounts, signed financials, and up-to-date tax records – banks need clarity.
Consider a deposit to tip borderline applications into “approved” and improve rate offers.
Avoid co-signing or standing surety for others while you’re applying; it weakens your profile.
6. Use calculators and pre-qualification to de-risk decisions
A quality bond affordability calculator is your first filter.
Test:
Different purchase prices and deposit sizes.
Repayments at current rate and if there is an increase of 1 or 2%
The impact of levies/rates on your monthly repayments.
Once-off transfer and bond costs to ensure your cash buffer is sufficient. (Transfer duty is covered if purchased directly from developer)
Then pursue a pre-qualification. It gives you a realistic price band and highlights any issues early (like a bureau error or affordability gap). Shopping with a pre-qualification also strengthens your position with sellers.
7. Product fit matters as much as price
Don’t force a financial “yes” onto a lifestyle “no.”
Consider:
Location efficiency – commute, school runs, future transport routes. Time is money.
Operating costs – energy efficiency, levies that include meaningful services, security that lowers insurance.
Resale and rental liquidity in the area. You’re buying a home and a financial asset. Both must make sense.
Sometimes a slightly smaller unit in a better-run development is the smarter buy over the long term because monthly volatility is lower and exit demand is stronger.
8. The Craft view
As a developer, we want you to buy with confidence and keep your home through cycles. That means we’ll always nudge you toward sustainable affordability rather than maximum stretch. Use the tools, ask the questions, and pressure-test your numbers. If a deal only works on a perfect month, it’s not the right deal.
Next steps you can take today:
Pull your credit report and resolve any issues.
Run your budget through a bond calculator using conservative rates.
Set a deposit target and automate the savings with a recurring transfer to a savings account.
Get pre-qualified and shop within that band. Eyes open on levies, rates and operating costs.
Choose the home that fits your life and your ledger.
In a market as dynamic as South Africa’s, clarity is a competitive advantage. The more you understand your numbers, the more options you unlock. At Craft Homes, we’re building developments we’re proud of; paired with informed buyers, that’s how you create value that lasts.
