How Your Employment Status Affects Your Mortgage Approval In South Africa

Thinking about buying a home but concerned your employment status may affect your mortgage approval? Whatever your employment type, we have tailor made home loan options to suit you.

Employment types and what they mean for your home loan

The mortgage approval process is all about proving income and affordability. Full-time employees generally find this easier, thanks to regular payslips and a stable income. But if you’re on contract or freelance, you’ll need to supply additional documentation to show consistent earnings.

Full-time vs contract work: What lenders are looking for? The lender wants to know whether you can pay back the loan over the term regardless of whether you are permanently or contractually employed.

Tips to strengthen your application

Here are a few South African home loan tips to boost your application:

• Keep your credit record healthy by paying your accounts timeously
• Save for a deposit, even 10% can make a difference
• Reduce existing debt to improve your debt-to-income ratio
• Use our affordability calculator to get a realistic picture of what you can afford

Did you know?

Being self-employed or working on contract doesn’t automatically disqualify you from getting a home loan. With the right documents and preparation, you can still get approved.

What documents do you need?

To prove income stability, especially for contract workers or freelancers, you may need:

• 6 month’s bank statement
• 2 years audited financial statements or payslips, depending on your employment status
• Valid contract or proof of continuous income
• A signed letter of drawings from your accountant

Income stability is key. Even if your income varies, showing a consistent average over time helps lenders understand your financial reliability.

We are here to help you bond with us. Whether you’re full-time, freelance or somewhere in between, SA Home Loans is ready to help you navigate the home loan journey. Our team of home loan specialists understand that everyone’s path to homeownership is different and we are here to help you every step of the way.

Contact our team on 0860 2 4 6 8 10 or request a call back today.