The future of Home Loans for the South African Investor

Credit Score Banks typically want a minimum score of 610–650, with 700+ getting better interest rates and 750+ qualifying for the most competitive offers. A score below 610 will likely result in decline. Affordability (NCA Compliance) Under the National Credit Act (NCA) Regulation 23A, banks must perform a formal affordability assessment: Monthly bond repayment should not exceed 30% of gross income Total monthly debt obligations (bond + car + credit cards + loans) should not exceed 36% of gross income Banks calculate your Net Discretionary Income (NDI) — what's left after tax, deductions, and all existing debt Employment & Income Stability Salaried employees: Minimum 6 consecutive months in permanent employment Self-employed/contractors: Minimum 2 years' trading history, 3 years' audited financial statements Commission earners face stricter scrutiny — banks typically average 3–6 months of earnings Deposit (Loan-to-Value Ratio) Most banks prefer a 10% deposit (90% LTV) 100% bonds are available to qualifying applicants but come with higher interest rates A larger deposit = lower interest rate and better approval odds Property Valuation The bank commissions an independent valuation of the property. The loan is approved against the lower of the purchase price or the valuation — if the property is overpriced, the bank won't cover the difference. Credit History & Behaviour Banks review your full credit bureau report, looking at: Payment history (missed/late payments) Judgements, defaults, or administration orders Number of recent credit enquiries Current credit utilisation Existing Debt Obligations All current monthly commitments are factored in — personal loans, vehicle finance, store cards, credit cards, and maintenance/child support obligations. Residency Status South African citizens and permanent residents: full loan options Foreign nationals: typically limited to 50% LTV (50% deposit required) and restricted to certain property types

You’ll first be required to create a profile and then you’ll continue to complete your application form online. Complete your free pre-approval in just 2 minutes and find out where you stand with no obligation or impact on your credit score. Have a discussion (Not-compulsary) with one of our Specialist to best structure your finance need for the bank. Once you’ve signed an Offer to Purchase and have electronic copies of your ID, latest payslip and 3 months bank statements, then you’re ready to complete the online home loan application. For entities and Trusts additional documentation will be required. As your application is submitted in real time to the top banks, you will start to receive offers from the banks within 72 hours. We will provide you with regular feedback from the banks. Once offers start coming in, you’ll be able to compare them on your dashboard and once you’ve selected the best offer for you, the bank will be notified and will be in contact with you to finalise your home loan.

Complete your free pre-approval in just 2 minutes and find out where you stand with no obligation or impact on your credit score. Find out how much you can qualify with a credit report.

Banks consider your relationship history with past and current creditors. Your ability to make consistent repayments to your creditors is a critical factor in the credit assessment process. The second factor banks will take into consideration is your affordability, i.e. your monthly income minus your fixed expenses. This gives you a surplus that makes up a budget for what you can afford to spend on a house. They also take into consideration the deposit amount you have available, which gives them a level of your equity commitment in the property.

When applying for a home loan, budget for once-off costs like transfer costs, transfer duties, initiation fees, and bond registration fees. These are separate from your monthly repayments. Use our transfer cost calculator to get a clearer picture.

The transfer cost is the cost to have the property transferred into your name at the Deeds Office. This cost consists of a once-off fee that you will pay to the government in terms of the transfer duty (any property below the cost of R1 210 000 is exempt from transfer duty). The other cost is the fee to register your property, the conveyancing attorney will charge this fee. This money will be used by the attorney to register you as the owner of the property at the Deeds Office.

The registration cost is a fee that the registering attorney charges in order to register the property in your name at the Deeds Office.

Besides the upfront costs such as the transfer duty, bond registration and bank initiation fees, you will need to consider maintenance costs, such as the rates and taxes, levies (sectional title property) and the cost of insurance such as homeowner's cover. The banks require you to have insurance cover on the property, as this is highly beneficial to managing the risk of damage to the asset.

Interest rate: The lower the interest rate, the lower your repayment. LTV (loan to value): The higher the LTV, the less deposit will be required, if any. Loan term: The number of years required to pay back the home loan. Example: If your loan term is over a shorter duration, then less interest is payable, but higher monthly instalments will be required. If a longer repayment period is selected, the more interest is payable, but your home loan instalments will be lower.

You might not qualify for 100% Mortgage Finance due to factors like your affordability, credit history, or the value of the property you want to buy. Ensuring a good credit score and understanding your financial limits can help.

We recommend that you start to save for a deposit the day you decide that you want to buy a house. The bigger the deposit you manage to save, the smaller the home loan amount you will require. By saving up for a deposit, it will improve your chances of being approved for a home loan, as well as reduce your monthly repayments.

It’s free to complete your online application and free to get pre-approved. If you decide to proceed with a home loan, normal bank charges and third-party costs may still apply, such as bond registration and transfer costs.