How To Qualify For A Bond | SA Home Loans

5 April 2017

How To Qualify For A Bond

Whether you’re in the market to buy a house as your primary residence or as an investment property to rent out, it’s likely that you will need to borrow funds from a reputable financial lender.
SA Home Loans is South Africa’s only independent, specialist mortgage provider.  As an alternate option to your traditional banks, we offer flexible lending solutions at competitive interest rates.

Here are some tips to increase the chance of your home loan being approved, the first time

  1. Affordability – Your affordability tells us whether or not you’re going to be able to manage your monthly home loan repayments. In order to determine your affordability, one would take your current income (salary, bonuses, overtime, allowances, rental, investments etc) and expenses (food, fuel, utility bills, school fees, subscriptions, entertainment etc) into consideration, then verify this information by referencing to your bank statements and other supporting documentation.  As much as you may be tempted to stretch yourself in order to afford more on a home loan, it’s important to be prudent and honest when presenting this information. Financial situations can change and being able to comfortably manage your obligations now and over the long-term, is always a wiser decision.

  2. Credit behaviour – Having and maintaining a healthy credit record is one of the most important personal finance assets one can have. The score and repayment behaviour of all applicants indicates their risk factor to the lender.  Inaccurate information or poor history can negatively impact an application for finance. Repairing a bad credit record is essential and should be considered as first steps before applying for any loan. 

  3. Have a deposit – The larger the deposit the better. There are significant benefits to saving towards a down payment on the property you're applying to finance. It’s not uncommon for lenders to offer better rates to clients who put up bigger deposits as the loan will appear less risky in the eyes of the lender.  Paying a deposit means that you will also be financing a lower amount.  The combination of a better rate and lower bond amount will put you in a better position from the beginning as you save on interest and capital repayments over the lifetime of your loan. Having said this, it is still possible to apply for a home loan with zero deposit.

  4. Documentation – Whether you’re self employed or a salaried individual, you need to be prepared with all the documentation that’s required for the loan application.  No lender will be able to assist if you aren’t able to provide supporting documentation for the New Purchase Loan, Switch Loan or Refinance Loan.

Opt for exceptional service

SA Home Loans is well known for offering clients competitive interest rates. However, unlike the banks, our exceptional, personalised service is the real reason behind our loyal customer base. Our clients are treated as individuals and each application is assessed based on its own financial merits.

Our property finance consultants are experienced in motivating a diverse range of bond applications. From first-time buyers to clients purchasing their third home, our team is specialised, and has the resources and information you need to secure the best loan. 

Contact us on 0860 2 4 6 8 10 for more information on our dedicated services.

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