How to qualify for bonds in South Africa

Would you like to own property in South Africa? Whether you want to purchase a home to rent out or one for your family, it’s typically an expensive investment. Unfortunately, this means that for a significant number of people, buying real estate with their own money is impossible. In these instances, most prospective homeowners apply for bonds from their banks.

Do you know how to qualify for a bond?

What do you do if your bank declined your application? First, don’t panic. Banks aren’t the only bond providers in our country. SA Home Loans is South Africa’s only independent, specialist mortgage provider and gives you an alternative that offers you flexible lending solutions at competitive interest rates.

Improving your financial standing increases your chances of a successful bond application. This method can also increase the amount you qualify for, enabling you to purchase an even better property.

Tips for securing a better bond

In South Africa, lenders typically approve applications based on a predetermined set of requirements. These strict criteria sometimes mean that buyers are declined even though they can afford to repay the requested loan. Even if your first application was approved, knowing the tips below can help you apply for a larger bond in future.

  1. Ask your lender to explain why your application was declined
    • There are many reasons why buyers aren’t approved for home loans in South Africa and it’s important that you don’t immediately get disheartened. Knowing the cause of a problem is the first step in finding out how to resolve it. Most people are declined bonds because they have too much debt or an inadequate credit score. If you research the reason behind your disqualification, you can develop a plan and solution that moves you forward.
  2. Compare bonds from various financial providers
    • Did you know that every financial provider can have a unique credit assessment process? As a result, even if one declines your loan application, another may approve it. In addition, different lenders can offer you more or less credit, depending on their criteria. For this reason, homebuyers should explore a variety of channels to find the best bond available to them.
    • With SA Home Loans, you can cut out the middle man and speak directly to our consultants about our products and services. Even when you’re researching your options through a bond originator, it’s wise to approach us directly and personally experience our service, features and the quality of our offerings.
  3. Get rid of your bad debts
    • Owing too many creditors money is one of the most common reasons behind home loans in South Africa being declined. This is because lenders believe that applicants with large amounts of outstanding debt have a greater chance of not keeping up with every monthly payment.
    • SA Home Loans evaluates the financial status of each applicant as an individual, approving or declining bonds based on merit. In doing so, our consultants take into account every aspect of your debt, from your credit history to your overall financial management strategy. Well-managed finances and healthy credit scores always increase your chances of a successful home loan application.
  4. Save up a large deposit
    • Another secret to qualify for a better bond is to come prepared with a significant deposit. Most credit providers require homebuyers to have access to at least 10% of their intended property’s value in cash. But did you know that having more than this available can benefit you in additional ways?
    • For one, the bigger your initial deposit, the smaller your capital debt – which in turn reduces your interest and saves you in the long term. Secondly, credit providers view homeowners with a higher deposit as a lower risk and may be willing to loan you a larger bond or better interest rate.
    • A deposit certainly increases your chance of affording a better home, and enables you to save thousands of rand over the lifetime of your loan.

Stop focusing on interest rates – opt for exceptional service instead

SA Home Loans is well known for offering clients competitive interest rates. However, our exceptional service is the real reason behind our loyal customer base. In fact, every one of our bond applicants is:

  • Treated as an individual
  • Assessed on his or her own financial merits

No one is held to set standards, as is the case with larger credit providers, such as banks.

Furthermore, 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. We can also help you switch your existing bond to one of ours.

Use the free SA Home Loans bond calculator

Our services are tailored to provide top-quality assistance, and to help with the lending process, we offer free bond calculator tools. These enable you to find out:

  • The affordability of a bond
  • The monthly instalments of a new home purchase
  • The money you could save through switching to a better loan

You simply have to select the calculator that meets your research needs best and fill in the necessary information. Instantly, you’ll see the value of property you can afford, what your instalment would be and how much you can save if you switched your bond to us.

SA Home Loans provides South Africans with effective bond solutions

You’ve now learned how to qualify for a bond, and the ways in which we can make that process even simpler. Mortgages are often a necessary expense, but they can be an effective financial tool with the right credit provider.

When it comes to home loans in South Africa, we can give you the expert assistance, flexible bond products and personalised service you deserve. Our property finance consultants are waiting for your call.

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