Skip to content

How much you need to earn to qualify for a home loan in SA

Here's the average salary required in each major province. We also explain how low-income earners can get a home with the First Home Finance

How much to qualify for home loan

Article summary

  • Our Bond Calculator and Bond Repayment Calculator can help you determine what salary you require.
  • We also provide an overview of average property prices in South Africa.
  • We highlight the First Home Finance subsidy, which makes homeownership a reality for low-income earners (R3 501 to R22 000 per month).

Owning a home provides a powerful asset and a sense of security. You may think it’s out of your reach, but this guide provides an overview of what you need to earn, as well as ways to achieve homeownership with a low salary.

Calculate what you can afford

Use our Bond Repayment Calculator to determine what you’ll pay in monthly repayments based on the property price.

Use our Bond Calculator to determine what home loan you’ll qualify for based on your gross monthly income.

How much of your salary should be set aside?

As a rule of thumb, you should be setting aside no more than 30% of your gross income for home loan repayments.

To get an idea of the salary you need, look at

  • The average price of a property in an area.
  • The cost of monthly home loan repayments on the property.
  • Compare the monthly home loan repayment to your salary to see if it equates to 30%.

For example:

  • The average price of a property in the Western Cape is R1 778 806.
  • According to our Bond Repayment Calculator, the average monthly repayment on that amount; assuming a 20-year repayment term, 10% deposit and current interest rate of 11.75; is R17 349.
  • R17 349 is 30% of R57 830.

So R57 830 would be the average salary to buy a home in Western Cape; the most expensive province in South Africa. Of course, this will vary from area to area.

Average property prices and required salaries in South Africa

This data will also give you an idea of what you need to earn:

  • Eastern Cape: Average property price = R1 048 847. Average required salary = R32 000 per month.
  • Western Cape: Average property price = R 1 778 806. Average required salary = R54 000 per month.
  • KwaZulu Natal: Average property price = R1 482 625. Average required salary = R45 000 per month.
  • Gauteng: Average property price = R1 500 000. Average required salary = R48 766 per month.

Low earner? Homeownership is a reality with First Home Finance

  • First Home Finance (formerly known as FLISP)  is a government subsidy aimed at low-income earners.
  • It’s aimed at South Africans with an income ranging from R3 501 to R22 000 per month.
  • The subsidy ranges from R30 001 to R130 000, depending on your income (the lower your income, the higher the subsidy).

How do I apply for First Home Finance?

The application is quick and easy. Simply apply online with ooba Home Loans. You can fill in the form online and we will submit it on your behalf and monitor the progress of your application so we can update you as needed (the application process usually takes around 7 days).

Get a solid idea of what you can afford by getting prequalified

The prequalification process assesses your financial situation, including your credit record, and ascertains what home loan you can afford.

So you can house hunt with confidence, knowing what price range you will qualify for.

You can get prequalified by contacting an expert at ooba Home Loans or by using our free, online prequalification tool, the Bond Indicator.

Get prequalified for a home loan today

DIY with our online prequalification tool, or speak to an expert.


Ranked #1 in Banking on Hellopeter

Star Rating

Average rating of 4.86 from over 4 550 reviews

Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M