How home loans work

Deposit and amount financed

A deposit reduces the amount that still needs to be financed. For example, a R2 million purchase with a R300 000 deposit leaves R1.7 million before any other transaction costs.

Interest rate and term

The interest rate affects the periodic cost of borrowing. The term determines how many payments are scheduled. A longer term can lower the monthly payment while increasing the total interest in a simple amortisation model.

Other property costs

A repayment calculator should not be treated as a complete property budget. A real transaction can involve legal costs, insurance, taxes, transfer-related costs, bank charges and other expenses.

Use the calculators together

Start with the deposit calculator, then use the home-loan repayment calculator to model the amount left to finance. Use affordability tools separately because affordability and repayment are not the same question.

ToolZeroo uses standard amortising-loan mathematics for repayment estimates and states assumptions visibly.

Related calculators

Information on this page is general and educational. Check the actual terms, rates and rules that apply to you.