What is Existing Property?
Existing Property means any Property owned by the Corporation or any Component Entity as of the Original Issue Date.
How To Use Existing Property To buy Another In South Africa?
Applying for a second home loan
Even though you already own a property, you will still have to go through the same process as you would if you were a first time home-buyer, meaning that the bank will need to evaluate your credit record, as it did the first time.
How can your existing property help with the application process?
You may wish to sell your first home and use the equity to pay for the deposit on the second property, thus earning you a higher chance of bond approval and a more favorable interest rate.
Using your first home to generate rental income
Bear in mind that most banks do not take potential rental income on the property into account when assessing your bond application.
Shop around for the best deal
Whether you plan to use the equity from your existing home to fund a deposit on the new home or not, be sure to shop around for the best deal when applying for a home loan,
as doing so grants you a better chance of bond approval and a favorable interest rate.