NCA mortgage agreement definition and caps

A mortgage agreement is credit secured by a pledge of immovable property. Use decision automation software to run mortgage credit decisions, with the maximum interest rate and fees at the current repo rate shown as decision table cells to copy into a credit decision.

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What counts as a mortgage agreement

A mortgage agreement is a credit agreement secured by a pledge of immovable property. This is the definition in NCA s.1 and the CCMR definitions.

Every mortgage agreement is a large agreement under s.9(4). A large agreement with a juristic person whose turnover or assets are below the threshold is outside the Act under s.4(1)(b).

Mortgage agreement interest and fee caps

Reg 42 sets the interest rate and initiation fee caps, and Reg 44 sets the service fee cap. The interest rate is set over the repo rate, so it changes with each Monetary Policy Committee decision.

Limit	Maximum amount	Rule
Interest rate	12 percentage points a year above the South African Reserve Bank repo rate, 19.25% a year at 7.25% from 23 September 2026	Reg 42 Table A
Initiation fee	Fixed amount R1,100, plus 10% of deferred amount above R10,000, capped at R5,250	Reg 42 Table B
Monthly service fee	Monthly cap of R60	Reg 44
Credit life cost	R2 for every R1,000 of the amount deferred	Credit Life Insurance Regulations 2017

Mortgage agreement caps for decision tables

Copy each table below as cells into a decision table, with one column per attribute. The attribute paths are examples to rename to match the lender’s data.

Mortgage rate and monthly cost caps

Sets the maximum rate over the repo rate, service fee and credit life cost for a mortgage agreement.

`loan.credit_type` Condition	`pricing.max_margin_over_repo` Result	`pricing.max_service_fee` Result	`pricing.max_credit_life_per_1000` Result
`=mortgage`	`12`	`60`	`2`

Mortgage initiation fee by amount

Sets the maximum initiation fee by amount, using a fixed fee plus a percentage of the amount above the threshold.

`loan.credit_type` Condition	`loan.amount` Condition	`fee.fixed` Result	`fee.factor` Result	`fee.above` Result
`=mortgage`	`<=10000`	`1100`	`0`	`10000`
`=mortgage`	`(10000,51500]`	`1100`	`0.1`	`10000`
`=mortgage`	`>51500`	`5250`	`0`	`10000`

Mortgage affordability assessment

Reg 23A applies to mortgage agreements, except for certain subsidised housing mortgages under 23A(2). Under 23A(13), the repayment history check takes place within 14 business days before approval.

Under s.80 and s.81, the lender assesses the consumer’s understanding and repayment history, along with their means, prospects and obligations. These sections do not apply where the consumer is a juristic person under s.78(1).

Mortgage agreements in market figures

The tiles below use the NCR’s quarterly market report, and the consumer credit tracker carries the series.

NCR figures for the quarter ended June 2026

Gross debtors book

R1,312.1bn

Share of credit book

51.2%

Credit granted

R52.2bn

Book 120 days or more in arrears

6.6%

Building the decision

Use the NCA affordability calculator to work the caps for a type at a repo rate. This page reads the regulations for building a decision, and the lender’s legal team checks the current text.

Other NCA credit types

Questions we get asked

What is a mortgage agreement under the NCA?

A mortgage agreement is credit secured by a pledge of immovable property. NCA s.1 and the CCMR definitions set out this definition.

What is the maximum NCA interest rate for a home loan?

Reg 42 Table A sets the maximum at the repo rate plus 12 percentage points a year. The cap changes when the repo rate changes.

What is the maximum initiation fee on a home loan?

Reg 42 Table B sets the fee at R1,100 plus 10% of the amount above R10,000. The maximum is R5,250.

How recent must a home loan repayment history check be?

Reg 23A(13) requires the repayment history check within 14 business days before approval. This timing applies to a mortgage agreement.