When calculating your home loan, use the price of the property you’re hoping to purchase.
Remember that the bank is granting you a loan specifically for the property you’re hoping to purchase (they will send valuators to make sure this price is fair).
You can’t get a loan worth more than the value of the property itself.
Remember that getting a 100% loan is very rare (but not impossible). It is most likely you will have to pay a deposit; the average deposit is around R100,000 to R300,000.
The bigger your deposit, the lower your monthly repayment will be since your loan you will be taking will be less.