How Much Deposit Do You Need to Buy a House in South Africa?

Zero deposit is possible, not always wise

Banks occasionally grant 100% bonds for strong earners with clean credit, but a deposit reduces your instalment, total interest and the risk of negative equity if prices dip.

A 10% deposit on a R1.8m home is R180 000 — often the binding constraint, not the monthly bond payment.

Costs beyond the deposit

Transfer duty, bond registration, conveyancing and moving costs add 8–12% on top of the purchase price for many buyers. Budget these in cash; banks do not finance them.

SARS transfer duty thresholds change with the budget — check the current table before you offer. First-time buyers below certain price caps may pay no transfer duty.

Saving the deposit without stopping life

Automate a dedicated savings account, keep the money in a low-risk instrument until you need it, and avoid dipping for holidays. A TFSA is usually wrong for a home deposit within five years — you want capital certainty, not equity volatility.

MyGenie's Buying a Home calculator uses your deposit (or full price if cash) as the WANT goal amount in today's money — the engine inflates it to your target purchase age.

This article is illustrative and educational. It is not financial, tax, or legal advice. Figures are examples only — model your own situation in MyGenie or speak to a licensed financial adviser.