FAQ

The calculator is designed for homeowners who currently hold a bond with another financial institution and are considering moving it to SA Home Loans. It helps you visualise potential savings on monthly repayments, estimate how much equity you can access as cash, and see how consolidating debt might improve your monthly cash flow.

Transfer duty is a tax imposed by the South African government on the transfer of property ownership from the seller to the buyer. It is a mandatory fee paid to SARS (South African Revenue Service) and is calculated based on the property's purchase price or market value, whichever is higher. Understanding transfer duty is crucial as it adds to your property transfer costs and is separate from other fees. For private buyers the transfer duty is calculated on a sliding scale, with higher rates for more expensive properties. While legal entities, like companies or trusts, pay a fixed percentage. For current rates and a detailed breakdown, visit our website: What Fees Can I Expect to Pay.

To generate an estimate, you need to input your Estimated Property Value, Gross Monthly Income and the Outstanding Balance of your current loan. You must also select your Repayment Term (20 or 30 years) and indicate your Income Type (such as Salaried or Self-Employed) to ensure the calculation aligns with your financial profile.

To use the calculator effectively, you need to input your Gross Monthly Income (your total earnings before tax and deductions), the Deposit Amount you plan to pay upfront, the expected Interest Rate and your preferred Repayment Term (usually 20 or 30 years). These variables allow the tool to estimate both the total home value you can afford and your expected monthly instalments.

While we consider various factors, a good credit score gives you a better chance; however, each application is assessed individually.

Including a deposit is highly beneficial because it directly reduces the total amount you need to borrow. This results in lower monthly bond repayments and significantly reduces the total interest you will pay over the lifespan of the loan. In some cases, a deposit may also influence the interest rate offered by the lender.

Deciding between renting vs. buying comes with various considerations. Benefits of renting include flexibility and lower upfront costs. You’re not responsible for major repairs, and it allows you to save towards your own property for the future. However, renting means monthly payments contribute to someone else’s pocket, and you face potential lease terminations.

On the other hand, buying a home builds personal wealth and equity over time, and offers stability and control over your property. Owning a home can also provide rental income opportunities. For a more detailed comparison of the pros and cons on both options, check out our article on Renting vs. Buying.

Yes, your bad credit score can impact your spouse’s ability to buy a house, particularly if you're married in community of property (COP). In a COP marriage, both spouses share assets and liabilities, meaning your credit score is assessed alongside your partner’s when applying for a joint home loan. This could lead to higher interest rates, or the loan application being declined. However, if you’re married with an antenuptial contract (ANC) and only your husband applies for the loan, his credit score will be the primary factor. Addressing credit issues early on can significantly improve your chances of securing a home loan, regardless of your marital status.

For more guidance, contact SA Home Loans at 0860 2 4 6 8 10.

Qualifying for a home loan when you have  a poor credit score is challenging, especially if you are blacklisted or have judgments. Our approval process adheres to the National Credit Act and involves a comprehensive assessment of your credit profile. Major credit bureaus  like Experian, TransUnion, and XDS emphasize that a good credit score is essential for a successful home loan application. A poor credit score may lead to higher interest rates or worse, your application being declined. To improve your chances of approval, start by checking your Credit Report and rebuilding a healthy credit profile. For further guidance or assistance, contact SA Home Loans at 0860 2 4 6 8 10.