Purchasing your dream property can be overwhelming, find answers to common questions here. This section provides straightforward information to help you quickly resolve questions and better understand our services.
In South Africa, banks can approve 100% home loans, meaning no deposit at all – depending on your credit profile and affordability. A deposit isn’t a legal requirement, it’s a risk buffer for the bank. The bigger your deposit, the better your interest rate usually looks, but it’s not the gatekeeper everyone thinks it is.
If you’ve been waiting to ‘save up first’ – don’t. Get in touch and let’s see what you actually qualify for.
Number one: late payments on accounts, even small ones like clothing store cards. Number two: applying for too much credit in a short space of time – it signals risk to the bank. Number three: undeclared debt or side hustles with irregular income that don’t show clearly on your bank statements. Clean this up 3-6 months before you apply, not after.
Want a free credit health check before you apply?
Pre-approval means a bank has already assessed your affordability and given you a ballpark figure – before you fall in love with a house you can’t afford. It costs you nothing, takes a couple of days, and instantly makes you a serious buyer to agents and sellers. Full approval only happens once you’ve got an actual property and offer to purchase. Skipping pre-approval is like grocery shopping on an empty stomach with no budget – messy.
Get pre-approved before you view a single house.
Banks don’t just look at your score, they look at your behavior: do you pay on time, how much of your available credit are you using, and how long you’ve had accounts open. A ‘good’ score with high credit utilization can still get declined. It’s less about chasing a perfect number and more about consistent, boring, reliable repayment history.
Not sure where you stand? Get in touch for a free credit report walkthrough.
On top of your deposit and bond repayment, you’ll need to cover transfer duty, which is a government tax on the property. Then there’s bond registration costs and attorney fees for both the transfer and the bond itself. Depending on the purchase price, these extra costs can add up to several percent of the property value. Budget for it upfront so it doesn’t blindside you at the finish line.
Want a full cost breakdown for your specific price range?
Variable rates move with the market – when the repo rate drops, your repayment drops too, but it can also rise. Fixed rates lock you in for a set period, giving certainty and easier budgeting, but you could miss out if rates fall. There’s no universal ‘winner’ – it depends on your risk appetite and how tight your monthly budget is. I usually recommend variable for buyers with some breathing room, and fixed for those who want zero surprises.
Not sure which suits you?
From application to final approval, most home loans take anywhere from 5 to 15 working days for initial bank approval, once all your documents are in order. Then add registration at the deeds office, which can take a few more weeks depending on the province and how busy the office is. All in, budget for 6 to 12 weeks from offer to keys – sometimes faster, sometimes slower. Patience and having your documents ready from day one speeds everything up.
Want a document checklist so you’re not the reason for delays?
People get approved for a certain bond amount and then buy right at the top of that limit. Just because the bank says you qualify for it doesn’t mean it’s comfortable for your lifestyle. Leave room for rate increases, maintenance costs, and life happening. A good rule of thumb: keep your total monthly debt repayments comfortably below what the bank’s maximum affordability suggests, not exactly at it.
Let’s figure out a bond amount that’s approved AND comfortable.
Banks typically want at least 6 to 12 months of business and personal bank statements, your latest financials or management accounts, and proof that your income is stable or growing, not sporadic. They’re not trying to disqualify you – they just need a clearer picture since there’s no fixed payslip. The more organized your paperwork, the smoother this goes.
Self-employed and ready to apply?
A bond originator submits your application to multiple banks at once, so they compete for your business – which can mean a better interest rate than going to just one bank directly. It costs you nothing extra; originators are paid by the banks, not by you. It also saves you the hassle of filling out separate applications everywhere.
Let us submit your application to multiple banks at once, at no cost to you.
Pre-approval actually speeds up the homebuying process: it gives you an accurate measure of your purchasing power, so you can narrow down your hunt to the properties you can actually afford to buy. And this will also prevent you from buying way beyond your budget, pushing you into unmanageable debt.
Sectional title speaks to complex living, where you essentially own everything within the four walls of your property, but whatever is outside that – hallways, lifts, gardens and recreational spaces – is communally owned and cared for. With freehold titles, in contrast, you’re the queen or king of your complete kingdom – house, out-buildings, land and leisure areas.
Nothing, the pre-approval is free.
The transfer duty is a government tax (the higher amount you pay on a property, the higher your transfer duty).
The transfer cost is a once-off fee you pay the transferring or conveyancing attorney. This fee covers their cost of registering you as the owner of the property with the Deeds Office.
A fixed interest rate remains a constant percentage over the bond term and isn’t affected by the fluctuation of the repo rate or the prime lending rate. A variable interest rate is based on the prime lending rate. This percentage fluctuates based on the repo rate that the South African Reserve Bank determines.
Our home loan calculator deducts your monthly expenses from your monthly income. This gives an indication of how much money you can spend on a home loan repayment monthly.
FLISP is a government subsidy that helps first-time homebuyers in South Africa afford a home. It gives a once-off payment that reduces the size of your home loan. To qualify, you must be a South African citizen over 18, buying your first home, and have people who depend on you financially. The money can be used as a deposit, to pay transfer and bond registration costs, or to make monthly installments smaller. You can apply through the NHFC, provincial Human Settlements offices, or certain banks. A recent change makes it easier – you no longer need to have a home loan approved before applying.
* The figures provided in this calculator are estimates for your convenience. Results are based on your input and assumptions.
Monthly repayment and affordability is subject to a full pre-qualification with one of our consultants.
