Frequently Asked Questions
We know that you need to research your best options, and to ensure that you are dealing with a reputable and solid financial institution. You know that knowledge is power. We want to answer all your questions – after all we have built our reputation on being SA’s specialist mortgage lending company, the people with the answers to your home financing needs.
There is also a Glossary of Terms you may want to look at to clarify a particular word.
About SA Home Loans
Are you a bank?
No we are not a bank. We compete with banks, as we offer an alternative. We’re a specialist mortgage provider using safe and secure, but innovative new ways to offer a range of home loans to South Africans. Banks get their funding for home loan finance from wholesale and retail money and capital markets and lend the money on to consumers, adding on a margin of approximately 3%.
SA Home Loans (SAHL) is different. We link you directly to the money markets via a non-bank concept called securitisation and pass the savings on to you. Your security is exactly the same as with a bank as your home is registered in your name at the Deeds Office.
Are you a mortgage originator?
No we are not a mortgage originator. Mortgage originators operate like insurance brokers. Mortgage originators get home loan offers from various financial institutions on your behalf. The financial institutions pay the mortgage originators a fee for finding them new clients. This is not what we do. We are the financial institution that provides you with the home loan directly, and services you as our valued client thereafter.
How does SA Home Loans operate?
SA Home Loans offers a fresh alternative to South African home owners. We’re mortgage specialists who are 100% focussed on offering your innovative home financing that stays in tune with your lifestyle and your changing needs. For life. We take the time to find out your needs, we come to you, and we work with you to find the right product options for your unique needs. Plus we offer related home products such as home owner’s cover and bond protection cover. In a nutshell, we’re risk free, innovative mortgage specialists.
Where are your branches?
We have branches all over South Africa. Here’s a List of Branches
You can call one of our specialist consultants on 0860 2468 10 or you can have someone come to you if you prefer. Just ask a consultant to arrange an appointment for you.
What is securitisation?
For the first time in South Africa, and launched first by SA Home Loans in 2001, an alternative method of funding has been designed to by-pass traditional intermediaries (the banks), and link borrowers directly to the money markets. This non-banking concept is that of securitisation, a globally established means of funding. For example, in the USA almost 40% of all debt is securitised.
SA Home Loans has launched ten Residential Mortgage Backed Security (“RMBS”) structures over the last five years, with a collective value of R18 billion. The creditworthiness of each is fully evaluated by rating agencies.
There is absolutely no risk for home owners. Properties are registered in the client’s name and are therefore legally owned by the client. The securitisation loan pools are housed in a Special Purpose Vehicle (SPV) that is ring fenced and insolvency remote – meaning no risk to the home owners.
Do you have internet accounts?
Yes we do. You can login securely and monitor your SA Home Loan anytime.
How do I change my home loan to suit me?
Simply call one of our specialist consultants on 0860 2468 10 and they will explain everything. They will explain the best options to suit your circumstances according to your qualification criteria. And once you have provided any additional documentation necessary they’ll take care of all the paperwork for you. When you take up a home loan with us, you’ll get a dedicated consultant who will work with you every step of the way – so you don’t talk to a new person every time you call.
What is your interest rate?
Our interest rate is linked to the JIBAR rate and each client’s interest rate is worked out to suit their particular circumstances. Because our home loans are so flexible and respond to the changing needs of our clients, there are many interest rate options available: fixed, variable, discounted. When you apply and anytime during the term of your loan you can discuss the best option for you that you qualify for at the time.
What is the JIBAR rate?
The Johannesburg Interbank Agreed Rate (JIBAR) is a 3 month deposit rate. It is a South African money market rate which is determined by a number of local and international banks, and updated on a daily basis. This rate is published each day by 11h00 on Reuters on the SAFEX page.
Our base funding is JIBAR – which is a widely published banking rate. For our variable loans, we reset your rate every three months, if JIBAR changes. To arrive at your total interest rate, we add to JIBAR our margin (link) rate. This margin is determined by our risk and eligibility criteria, and is agreed with you at the time of approving your loan.
How do I know my money is safe with you?
SA Home Loans is a specialist mortgage provider which uses an established and accepted means of funding in other markets all over the world. Your security is exactly the same as with a bank, as your home is registered in your name at the Deeds Office. And SA Home Loans have blue chip shareholders such as Standard Bank and JP Morgan; we are solidly profitable and have over 100,000 satisfied clients.
About Switching
What is switching?
When you already own a property and have a home loan and wish to switch your home loan to another provider to put yourself in a better position financially. This could be because you get a better rate, but there are lots of other considerations too. You may switch to get better access to the equity in your mortgage or to take advantage of product features that reduce your risk, or you could be looking for better service and support from your home loan provider.
How do I know if I qualify to switch?
Take a moment to use the Calculator which will give you a good indication of the various qualification criteria. Otherwise call one of our specialist consultants on 0860 2468 10 - they will be happy to assist you.
What interest rate will you charge me?
Interest rate is set based on many variables – most of which are determined by the client. Do you want to reduce your risk and fix your interest rate? There are many more options to consider than just the interest rate when choosing the best home loan product for you. And the interest rate may be different depending on the option you choose. The best way is to take the time to make an application. No one application or set of circumstances is the same. We prepare a no-obligation proposal for you to consider. Why not call a specialist consultant on 0860 2468 10 and get your proposal under way.
What do I need to do to switch/apply?
We offer a simple step-by-step process. Please click here for details
What documentation do I need?
Please click here for details
About a New Home Loan
How do I know if I qualify for a home loan?
Take a moment to use the Calculator which will give you a good indication of the various qualification criteria. Otherwise call one of our specialist consultants on 0860 2468 10 - they will be happy to assist you.
What will my monthly repayments be?
Take a moment to use the Calculator which will give you a good indication of the various qualification criteria. Otherwise call one of our specialist consultants on 0860 2468 10 - they will be happy to assist you.
What interest rate will you charge me?
Interest rate is set based on many variables – most of which are determined by the client. How much deposit can you afford to put down towards the purchase? Typically, a larger deposit will qualify you for a lower interest rate. Do you want to reduce your risk and fix your interest rate? There are many more options to consider than just the interest rate when choosing the best home loan product for you. And the interest rate may be different depending on the option you choose. The best way is to take the time to make an application. No one application or set of circumstances is the same. We prepare a no-obligation proposal for you to consider. Why not call a specialist consultant on 0860 2468 10 and get your proposal under way.
What do I need to do to apply?
We offer a simple step-by-step process. Please click here for details
What documentation do I need?
Please click here for details
About Buying a First Home
What do I need to know before buying my first home?
We have detailed information on all the information you need to think about before you buy your first home. Please click here for details
About the NCA
What is the NCA?
The National Credit Act aims to protect consumers taking credit or entering into consumer credit transactions. In addition, The Act makes provision for the control and regulation of all credit transactions, including mortgages, credit cards, overdrafts, micro-loans and pawn broking transactions. The Act also regulates all institutions that provide consumer credit, including SA Home Loans and the banks.
Provision is made in the Act for the registration of debt counsellors and debt restructuring for over-indebted consumers.
Does the NCA apply to me?
The NCA applies to credit agreements with all consumers, and to entities such as closed corporations, companies, partnerships and trusts, whose asset value or annual turnover is below a prescribed threshold (currently R1million).
How does the NCA affect me?
You may be required to provide additional information when applying for credit in order for an affordability assessment to be performed.
You’ll find that documentation affecting the granting of credit or extension of credit is written in plain language and that a clear breakdown of costs is provided.
Your credit provider is required to make sure that you understand the risks, obligations and costs associated with your credit application.
Will there be any changes to processes and forms when applying for credit?
We will require additional information when assessing your application loans including details of all your income and expenditure in order to perform an affordability assessment. If you are married in community of property you will require the written consent of your spouse before you can apply for a loan.
If you can’t find the answer to your question here, please call our specialist consultants on 0860 2468 10 – weekdays from 8am to 4.30pm or Saturdays from 8am to 12.30pm