Home Buyers Guide 5: Documents required for a home loan application

You’ve found your dream home, made an offer which the sellers have accepted and you’ve familiarised yourself with the overall home loan application process. Now you need to collect all the documents needed to begin applying for a home loan.

The most important fact a bond provider needs to know is that you have the income to afford your monthly repayments. So, the first thing you need to disclose is whether you’re employed by a company or you’re self-employed – and this will determine  exactly what documents you need to submit.

Employed Applicants

Being employed by a company usually means a steady monthly income and there are certain documents you’ll need to submit when applying for a home loan:

  • Your latest payslip(s) from your employer
  • A certified copy of your ID
  • A copy of your marriage certificate or antenuptial contract
  • A copy of the Purchase Agreement for the property (not required if you’re switching from an existing financial institution to SA Home Loans)
  • Three months’ personal bank statements
  • A statement of your personal assets and liabilities (only for loans over R1.5 million)

Employed applicants who earn commission as well as a basic salary must also submit proof of the last three months of their commission earnings.

Self-employed Applicants

Freelancers or those who run their own businesses are classed as self-employed and their monthly income may fluctuate. In these cases, applicants have to submit:

  • Proof of income: Letter of Drawings from a registered accountant
  • Latest 6 months personal bank statements
  • Personal assets and liabilities statement
  • Latest 6 months business account bank statements
  • Latest 2 years annual financial statements
  • Where the annual financial statements are older than six months, a management accounts statement that is not older than two months must be signed by the applicant and an accountant and submitted with the financial statement
  • Copy of your ID document
  • Copy of marriage certificate or ANC contract
  • Copy of Registration or Trust Deed
  • Copy of Purchase Agreement – If applying for a New Purchase loan
  • 12 months bond statement – If switching from an existing home loan to SAHL
  • Latest rates/ Levy statement/ Utility account statement

If you’ve found this article useful, you may wish to download our Home Buyers Guide, which is jammed full of other useful information.

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