A 100% bond looks tidy on paper. In practice, it can leave a Centurion buyer paying more for the money, not just for the house. The deposit does two jobs at once: it pulls down the loan size and improves the rate the bank is willing to offer.
People miss this when they fixate on whether they can scrape together a deposit at all. On a R1.8 million purchase in Highveld, Eldoraigne, Midstream or one of the other Centurion pockets buyers keep eyeing, the cheaper monthly instalment is not always the 100% bond. Sometimes the cheaper deal starts with cash on the table.
What the current lending picture looks like
ooba Home Loans reported in Q1 2026 that first-time buyers paid an average deposit of 8.2% of the purchase price, down from 9.6% a year earlier. Its same quarter data also showed an overall approval rate of 84%, while approvals for 100% home loans among first-time buyers reached 80.9% from January to April 2026. BetterBond’s July 2026 guidance says a 10% deposit improves both approval odds and access to a better rate. Its May 2026 commentary puts national approval rates at 63.5%, with pre-approved clients still converting at 95%.
Banks are still writing high-LTV loans, but borrowers who bring a deposit usually look safer and cost less to fund.
For this article, I have used current indicative pricing that reflects that reality:
- 0% deposit, loan of R1.8 million, at 10.50%
- 10% deposit, loan of R1.62 million, at 10.25%
- 20% deposit, loan of R1.44 million, at 10.00%
Those are indicative quotes, not promises. Your credit profile, income, debt load and the bank you land with will move the number.
What the three bond choices cost
Here is the clean comparison for a R1.8 million Centurion home.
100% bond, no deposit
Loan amount: R1,800,000 Indicative rate: 10.50%
- 5 years: monthly repayment about R38,535, total interest about R511,074
- 10 years: monthly repayment about R24,861, total interest about R1,183,343
- 20 years: monthly repayment about R18,208, total interest about R2,570,018
10% deposit
Deposit: R180,000 Loan amount: R1,620,000 Indicative rate: 10.25%
- 5 years: monthly repayment about R34,297, total interest about R452,943
- 10 years: monthly repayment about R21,880, total interest about R1,024,636
- 20 years: monthly repayment about R15,977, total interest about R2,201,408
20% deposit
Deposit: R360,000 Loan amount: R1,440,000 Indicative rate: 10.00%
- 5 years: monthly repayment about R30,184, total interest about R395,041
- 10 years: monthly repayment about R19,376, total interest about R871,138
- 20 years: monthly repayment about R14,417, total interest about R1,861,950
On a 20-year term, the 20% deposit scenario saves about R708,000 in interest versus the 100% bond in this model. Even the 10% deposit case cuts the long-run interest bill by roughly R369,000.
The gap looks manageable if you only look at the monthly payment. If you stay in the bond for years, the gap turns into real money.
The cash you still need up front
The deposit is not the whole story. Transfer duty, transfer attorney fees, bond registration costs, deeds fees and sundries are paid before the move feels real.
On a R1.8 million purchase, SARS transfer duty alone is about R21,786 at the 2026 table. Add the legal and registration costs, and a buyer should budget roughly R100,000 to R115,000 in upfront transaction cash, depending on the attorney and the bond amount.
A safe working estimate for the extra cash needed looks like this:
- 0% deposit: about R105,000 to R115,000
- 10% deposit: deposit plus costs, so about R285,000 to R295,000
- 20% deposit: deposit plus costs, so about R465,000 to R475,000
The bank does not care that you have just emptied your savings account to buy the house. The municipality still wants its first accounts. The geyser can still fail. The moving truck still has to be paid. There is still paint to buy, blinds to fit, and a month where your old and new expenses overlap.
The part that should shape your decision
A deposit is not only about reducing debt; it is also a negotiating tool. Banks price risk. A buyer who needs every rand financed is a more expensive borrower than one who brings in 10% or 20% of the purchase price.
Not every Centurion buyer should force a deposit at any cost. If paying R360,000 in deposit drains the account so hard that you have no reserve for transfer costs, repairs or the first municipal bills, you have not bought security. You have simply moved the panic from the bond to the bank balance.
In suburbs like Eldoraigne and Highveld, where family homes can move quickly if they are well priced, buyers often rush to secure the house and then underbudget the cash needed to close the deal properly. Good intentions turn ugly. A buyer who is stretched from day one is one roof leak, school fee cycle or load-shedding repair away from trouble.
The cleaner way to think about it
For a R1.8 million Centurion purchase, the question is not “Can I get a 100% bond?”
The real question is this: can I buy the house, cover the transaction costs, and still keep enough cash back to live like a homeowner instead of a hostage?
If the answer is yes with a deposit, the deposit probably belongs in the deal. If the answer is no, a 100% bond may get you in the door, but it will cost more over time and leave less room for anything to go wrong.
For most buyers I deal with in Centurion, the smartest move is not the biggest deposit they can possibly scrape together. It is the deposit that improves the rate, keeps the monthly repayment sensible, and leaves emergency cash on hand after transfer day.
