FAQ | SA Home Loans

STAY ALERT, STAY SAFE!

For a smooth and stress-free experience, always verify SA Home Loans branch and consultant details here on our official website. Remember, we’ll never ask for any fees or monies to be paid upfront.

FAQ

Everything you need to know about home loans.

  • Are the interest rates and fees shown in the results guaranteed?

    No, the results are indicative only. The interest rate used in the calculation is a guideline and your actual rate may differ based on your specific credit profile and financial criteria. Furthermore, while the tool estimates Bond Registration and Initiation Fees, it does not include Homeowners or Credit Life insurance premiums, which are standard requirements for the loan.

  • Are the results provided by the calculator a guarantee of loan approval?

    No, the results are indicative only and serve as a helpful guideline for your planning. A formal home loan offer is subject to a full credit assessment, a property valuation and SA Home Loans' standard terms and conditions. The actual interest rate and loan amount you receive will depend on your specific credit profile and financial criteria at the time of application.

  • Can I apply for another home loan even if my current one isn’t paid off?

    Yes, it is possible, however, it depends on your financial situation.

  • Can I borrow against my house to buy another house?

    You can certainly acquire another property by borrowing against your house. This can be achieved by accessing the equity available in your home loan, where you use the value of your current home to secure funds for a new purchase. Alternatively, consider a refinance loan or switch loan, which allows you the opportunity to maximise your existing mortgage and potentially access additional funds. Leveraging the equity in your home can provide the financial boost needed to invest in another property and grow your property portfolio. To find out how much you could access for a new property, try our Home Loan Switch Calculator.

  • Can I choose to add the legal and initiation fees to the loan amount?

    Yes, the calculator includes an option to "Capitalise fees". By selecting "Yes," the initiation and bond registration fees are added to the total home loan amount rather than being paid as an upfront lump sum. This will, however, slightly increase your total loan balance and your monthly instalment.

  • Can I switch my home loan to SA Home Loans?

    Definitely. Switching is simple, and we will walk you through every step, from your current bank to your new bond with us.

  • Can I use the "Switch" option to access extra cash from my property?

    Yes. The calculator includes a "Cash Out" field where you can specify an amount of extra money you would like to receive. The tool then assesses this against your household income and the market value of your home to determine if you qualify to capitalise those funds into your new loan structure.

  • Can I withdraw these extra payments if I need the cash later?

    Yes, we allow clients to use their bond as an interest-bearing savings account. You can apply to withdraw funds that you have paid over and above your normal instalments (often referred to as a "Redraw"). Our clients are typically permitted to make up to six withdrawals per year, usually starting from a minimum amount of R10 000.

  • Can SA Home Loans assist with FLISP subsidy (now called First Home Finance)?

    Yes, we can. We’re registered with the subsidy programme and can help you apply if you are a first-time buyer earning up to R22 000 per month.

  • Can someone help me if the property’s purchase price has been reduced?

    Yes! If there is a price change, just let us know. We will reassess the loan value and update your documents accordingly

  • Do I pay transfer or bond costs when switching?

    Yes, standard transfer and bond registration costs apply. This can be incorporated into the bond.

  • Do municipal workers qualify for the housing access loan?

    Yes, municipal and public sector workers can apply for housing access loans through SA Home Loans, provided they meet the criteria.

  • Do you offer home loans to people who want to build in rural areas?

    Yes, we assess each application based on the location, land rights and value of the property. Get in touch so we can guide you.

  • Does checking my potential repayments affect my credit score?

    Using the online repayment calculator has absolutely zero impact on your credit score. If you transition from the calculator to a preliminary pre-approval check, it is typically treated as a "soft inquiry," which does not damage your credit rating. However, once you proceed to a formal, full application, SA Home Loans will conduct a "hard inquiry" via the credit bureaus, which may temporarily affect your credit score.

  • Does pre-approval affect my credit score?

    Pre-approval for a mortgage involves a lender reviewing your credit report to assess your financial situation. This is generally considered a soft inquiry, which does not impact your credit score. Unlike hard inquiries, which occur when you formally apply for credit and can slightly lower your score, soft inquiries are only visible to lenders  and do not affect your credit rating.
    However, it's important to note that when you proceed with a full application, the lender will conduct a hard inquiry, which may impact your credit score. For more details on the impact of credit inquiries, visit Experian, XDS, or TransUnion.

  • Does the calculator provide a guaranteed final cost for switching?

    No, the results are indicative only. While the tool estimates Initiation Fees and Interim Interest, it does not account for specific insurance premiums or external legal costs. A final offer is subject to a formal credit assessment, a property valuation, and the fulfilment of SA Home Loans' standard lending criteria.

  • How are my monthly repayments calculated?

    The calculator computes your monthly instalment based on three core inputs: the intended loan amount (purchase price minus your deposit), the potential interest rate, and the loan term (usually defaulted to 20 years, though 30-year options can be selected). However, your real-world rate will be heavily influenced by your employment status (salaried vs. self-employed) and your credit history.

  • How do I activate my bond protection plan?

    On each new client accepted loan, one of our FAIS accredited consultants will contact you and provide full details of our cover. If you decide not to proceed with cover at that time, you can call in throughout the duration of your home loan and speak to one of our FAIS accredited consultants.

  • How do I check if I qualify for a home loan?

    It is simple, just use our online calculators or speak to one of our expert consultants. We will assess your affordability based on your income, expenses and credit profile.

  • How do I clear my name from the credit bureau in South Africa?

    To clear your name from a credit bureau in South Africa, begin by obtaining your credit report from reputable bureaus like Experian, TransUnion, or XDS. Review your credit history carefully for any judgments, defaults, or errors that may have resulted in being blacklisted. Ensure you settle all outstanding debts and verify that your creditors update and correct their records.


    If you were under administration, you will need a clearance certificate from your debt counsellor or administrator. This document confirms that all your debts have been settled and the debt review process is complete. Submit this certificate to the credit bureaus to update your credit record. Regularly monitor your credit report to ensure all corrections are accurately reflected.

     

  • How do I get pre-approved?

    You can apply for pre-approval on our website. Once you submit your documents (like payslips and proof of employment), we will verify everything and let you know if you are eligible.

  • How does a mortgage work?

    A bond allows people to buy property without paying the full purchase price upfront. Instead, they apply for a home loan from a lender, who evaluates their creditworthiness, income, and the property’s value as part of the mortgage process. The monthly repayment amount includes both capital and interest, which the borrower agrees to pay back in monthly instalments, over the loan period – which is usually 20 to 30 years. Paying off the home loan sooner reduces interest costs. If the borrower fails to repay, the lender can take ownership of the property to recover the debt. This home loan process ultimately helps an individual to secure ownership for residential property.

  • How does interest on home loans work?

    Home loan interest rates differ from person to person, based on their risk profile. Lenders assess factors such as affordability and credit profiles to determine your rate. These rates can be fixed or variable over the loan term. The amount you borrow includes the cost of the property, or principal amount, plus interest . Initially most monthly payments  go towards paying off the interest, with less towards the principal balance. As the loan progresses, more of your monthly payments reduces the principal amount. Understanding mortgage interest types and your risk profile helps you secure the best rate and manage your payments effectively.

  • How does my deposit size or interest rate variations affect the calculation?

    The calculator highlights how highly sensitive monthly repayments are to fluctuations. Putting down a larger deposit directly lowers the required loan amount, which reduces your monthly instalments and could also secure you a better interest rate. Conversely, even a minor increase in the interest rate can significantly raise the total interest you will pay over the 20 or 30-year loan term.

  • How does the calculator determine how much I can afford to spend on a home?

    The calculator determines your affordability by combining two main factors: the maximum loan amount you qualify for and the cash deposit you have available. The loan amount is typically calculated based on a maximum of 30% of your provable gross household income, ensuring that your monthly repayments remain manageable within your budget.

  • How does the calculator show the impact of these extra payments?

    The calculator provides a side-by-side comparison of your current and projected financial outlook. It highlights your Potential Savings across several categories, including the reduction in your Remaining Term (how many months sooner you will be debt-free) and the total Interest Saved over the duration of the loan.

  • How long does it take to finalise a home loan after submitting documents?

    Once we receive all the required paperwork, it typically takes 3-5 working days to get a final answer.

  • How much can I afford to buy a house?

    Determining your home loan affordability is a crucial step in the home-buying process. In South Africa, lenders typically ensure that home loan repayments don’t exceed 30% of your combined household income, with repayment terms averaging 20 years (240 months). If your income alone doesn’t qualify, you could consider applying jointly with your partner or someone else in your household to increase affordability. This shared financial responsibility can improve your chances of securing a loan. Saving for a larger deposit can also reduce monthly repayments. Use our home loan affordability calculator to estimate what you can afford to meet your home purchase requirements.

  • How much deposit do I need?

    The larger the deposit, the better. Understanding the mortgage deposit requirements are important when buying a home. Even though some lenders offer 100% bonds, it’s wise to save for a deposit as a larger deposit means borrowing less which can result in a better interest rate and lower monthly instalments.  For a first-time buyer, a typical deposit for a house ranges between 10% and 20% of the property price, though any deposit is beneficial. Putting down a deposit demonstrates commitment  to the seller and improves your chances of a loan approval, as you are seen as a lower risk to the lender.

     

  • How much do I need to earn to qualify for a home loan?

    It depends on the home loan amount you are applying for. Our minimum income requirement is R8 000. As a general guide, your monthly home loan instalment should not exceed 30-35% of your gross monthly income.

  • How to qualify to a home loan?

    To qualify for a home loan in South Africa, lenders will assess your credit and affordability to determine your risk, and the interest rate you will receive. A strong financial profile increases your chances of qualifying for a mortgage loan. Consider these simple tips for home loan qualification: aim for a favourable loan-to-value ratio by saving for a deposit, and ensure your income comfortably covers your existing debts. Check your credit record before applying and resolve any issues. It’s wise to know how much you can afford before starting your property search. When you’re ready, contact a reputable lender like SA Home Loans to ask for a pre-approval to begin your homeownership journey.

  • I am a government employee, can I qualify to build or buy a home?

    If you are building on land with approval from the chief or Induna we can assist you with finance on the presentation of required documentation. If you are buying in a new development, it will need to be built by a registered NHBRC builder.

  • I need a loan of R150 000 — what will the monthly instalment be over 20 years?

    Roughly around R1 300-R1 500, depending on the interest rate. Try the bond calculator on our site for a real-time breakdown.

  • I’m a first-time applicant, how do I apply?

    On our website, click “Apply Now”, and upload your details. Alternatively, call us and we will walk the journey with you.

  • Tell me more about the Edge Home Loan.

    Edge is ideal for first-time home buyers. You get reduced monthly instalments for the first 3 years, then revert to normal instalments. 

  • Tips for your credit score?

    Maintaining a good credit score is essential for securing a home loan. To improve your credit score, start by establishing a reliable income and opening a manageable credit account, like a clothing account. Pay your instalments on time, as even a single missed payment can negatively impact your score. Prioritise paying off credit cards, which carry higher interest rates. Close any unused accounts to avoid dormant data affecting your credit profile. Avoid using credit to pay off debt, as this can signal financial strain. Regularly check your credit score to monitor progress. Following these credit score tips will help meet credit score requirements.

  • Understanding your credit score

    Your credit score is crucial for securing a home loan and is calculated based on various credit score factors. It reflects your borrowing and repayment history, influencing lenders' decisions on your application. A good credit score, often around 700 or higher, indicates responsible credit management and positively impacts your loan approval chances. Positive factors include payments made on time and managing debt repayments responsibly, whilst missed payments, defaults or judgements or high credit usage can hurt your score. To improve your credit score, start with manageable credit purchases and pay more than the minimum required. Regularly check your score for accuracy and resolve any errors.

  • What additional fees are included in the calculator results?

    Beyond the base monthly repayment, the calculator provides an estimated breakdown of essential legal and administrative costs. These include the Bond Registration Fees which is paid to the bond registration attorneys, the Transfer Costs/Transfer Duty which is paid to the transfer attorneys and SARS (if applicable, based on property value), and the Initiation Fee which is a once-off administrative fee for setting up the loan.

  • What are the transfer costs involved when switching a bond?

    Transfer costs vary based on the property value and legal fees. You will also have bond registration and initiation fees, but our consultants will give you a full cost outline upfront.

  • What do I need to apply for a home loan?

    You will need a valid South African ID, proof of income, 3 months bank statements and supporting documents like a purchase agreement if you are buying a property. We will guide you through the full checklist when you apply.

  • What information do I need to use the Extra Payment Calculator?

    To see your potential savings, you need to enter your Current Loan Balance, the Remaining Term (in months) and your current Interest Rate. You can then input an Additional Monthly Payment or a once-off Additional Lump Sum Payment to compare your "Current values" against your "Projected values."

  • What information is required to calculate my refinancing options?

    To receive an estimate, you need to provide the Estimated Property Value, the amount of Cash Out you require, and your Gross Monthly Income. Additionally, you must specify the Repayment Term (typically 20 years), your Income Type (e.g., Salaried or Self-Employed) and the primary use of the property (such as a Primary Residence or Investment Property).

  • What is an Edge Home Loan?

    Our Edge Home Loan lets you pay only interest for the first 36 months. It is perfect if you are starting your career or need respite before jumping into full repayments.

  • What is the difference between transfer fees and transfer duty when buying a house?

    When buying a house, transfer fees and transfer duties are key property transfer costs. Transfer fees are paid to conveyancers by the buyer for managing the name change on the title deed of the property. Sometimes, a buyer can negotiate these home buying transfer fees, especially if the attorney also handles bond registration. In contrast, transfer duty is a government tax paid by the buyer. This tax, collected by a transferring attorney, must be paid to SARS before the property transfer is recognized. Understanding these costs when buying a house helps ensure a smooth transaction.

  • What is the main objective of the Refinance Payment Calculator?

    This calculator is specifically designed for homeowners who own a bond-free home (a property that is fully paid off) and wish to access the equity in that property. It helps you work out what your monthly instalments would be if you were to take out a new loan against the value of your unencumbered home to access cash for other purposes.

  • What is the primary benefit of making additional payments into a home loan?

    Making additional payments over and above your compulsory monthly instalments goes directly towards reducing your capital balance. Interest is calculated on the remaining balance and therefore reduces the capital quicker and has the dual effect of shortening your overall loan term and significantly lowering the total amount of interest you will pay over the life of the bond.

  • What is the primary purpose of the Switch Payment Calculator?

    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.

  • What is transfer duty?

    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.

  • What specific details must I provide to calculate my potential savings?

    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.

  • What specific information do I need to provide to get an accurate estimate?

    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.

  • What’s the minimum credit score required?

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

  • Why is it beneficial to include a deposit in the calculation?

    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.

  • Why renting is better than buying?

    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.

     

  • Will my bad credit score affect my husband buying a house?

    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.

  • Would I qualify for a home loan if I have a poor credit score?

    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.

Contact
Client Zone
Get started