Prime Interest Rate: 10.00%

Minimum Income Calculator

This calculator was more applicable before the introduction of the National Credit Act when it was used to calculate the gross income required in order to qualify for a specific bond amount.

The calculation previously determined the monthly bond repayment amount associated with a specific bond amount, annual bond interest rate and bond period. This amount was then divided by 30% (or multiplied by 3.333) to determine the gross income that is needed in order to qualify for a specified bond amount.

After the NCA came into effect, the 30% rule cannot be applied without also considering the applicant's actual net disposable income. The result is that after the NCA, the applicant's net disposable income must be greater than or equal to the monthly required bond repayment amount in order to qualify for the required bond amount.

This calculator therefore simply determines the monthly bond repayment amount which in effect is also the minimum monthly net disposable income that an applicant must earn in order to qualify for the specified bond amount. This amount should also not be more than 30% of the gross income as the banks will very rarely grant a bond based on a net disposable income which exceeds this level.

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