Guide · 8 short steps · about 7 minutes
Rent-to-own or a bond: which costs less?
We'd rather you make the right choice than the one that suits us. So here's the honest comparison, with real numbers.
The honest short answer
If a bank will approve you today, at a decent rate, for the home you want, a bond is usually cheaper than rent-to-own. Take it.
Rent-to-own is for the gap between “I can afford this” and “the bank agrees”. It costs more because it gives you things a bank won't: a home now, a fixed price while you get ready, and a lender of last resort if the banks still say no. The real question isn't which is cheaper. It's which one you can actually get.
Is it refreshing to hear it straight?
Yes, it is →What a bond costs today
South Africa's prime lending rate has been 10.75% since 25 September 2026, after the Reserve Bank raised the repo rate to 7.25%. Banks price your bond around prime, higher or lower depending on your risk.
On a R2 million home with a 10% deposit, a R1.8 million bond at prime over 20 years costs about R18 274 a month. On top of that you pay transfer duty (none below R1.21 million; about R33 786 on R2 million), plus transfer and bond registration fees.
Does it help to see the bank's numbers first?
Yes, it helps →What rent-to-own costs
With Lease to Buy SA, the same R2 million home would carry a fixed purchase price of R2.4 million (20% above market value). On a three-year lease you'd pay a 5% option fee of R120 000, which comes off the price when you buy, plus a refundable deposit.
Rent is set 20% above the top of the market rent and rises 7% a year. If the home would normally rent for up to R16 000, you'd pay R19 200 a month in year one. You also cover rates, levies and maintenance, as an owner would.
Is it good to see every cost laid out?
Yes, it is →What the extra pays for
- A home now, not after the bank finally agrees.
- A fixed price. If values rise over your lease, the premium shrinks in real terms.
- Time to clear debt review, build two years of business financials or save a deposit.
- A plan B. If no bank approves you, Nine Stones Capital finances the home over 30 years.
- No forced exit. Buy early, settle early or sell without penalties.
Can you see what you'd be paying for?
Yes, I can →Side by side, buying in year three
| Bond today | Rent-to-own, buy in year 3 | |
|---|---|---|
| Price | R2 000 000 | R2 400 000 (fixed) |
| Deposit | R200 000 | R120 000 option fee |
| Amount borrowed | R1 800 000 | R2 280 000 |
| Bank bond at prime, 20 years | ≈ R18 274 pm | ≈ R23 147 pm |
| Or Nine Stones finance, 30 years | n/a | R27 920 pm at 14.5% |
Bond figures use prime of 10.75% and are estimates; your bank's rate may differ. The comparison only holds if the bank would approve you today. If it won't, the bond column doesn't exist for you yet.
Does seeing both side by side make the choice clearer?
Yes, it does →When each one wins
A bond wins when you're approved now, at a reasonable rate, with the deposit you have, for the home you want.
Rent-to-own wins when you're declined or offered a rate you can't carry, when you need one to three years to fix your credit or your paperwork, when you've found the home and don't want to lose it, or when you're self-employed and the banks can't read your income yet.
Do you know which side of the line you're on?
Yes, I think so →Costs people forget, on both sides
- Transfer costs apply whichever way you buy: transfer duty above R1.21 million, plus the conveyancer's fees.
- Bond registration fees apply when you borrow from a bank.
- Rates, levies and insurance are yours as an owner, and also during a Lease to Buy SA lease.
- Maintenance is never free. Budget for it either way.
A good rule: whichever route you take, keep a buffer of at least three months' costs.
Would it help to plan for these from the start?
Yes, it would →Your next step
If you're not sure which route fits, apply anyway. We'll look at your numbers, and if a bank bond is the better choice for you today, we'll tell you so. If it's not, we'll show you what rent-to-own would look like on the home you want.
This guide is general information, not financial advice.
Are you ready to apply?
Yes, I'm ready to apply