Are you on the brink of applying for a home loan? There are a few things relevant to South Africans hoping for a positive outcome from their application for finance to procure their dream home.
It goes without saying that you need a good track record when it comes to managing credit before a bank will consider granting you a home loan. You need to be able to show that you pay your debts in full and on time.
You need to be 18 years or older, permanently employed for six consecutive months or self-employed for the past two years.
You’ll need to provide us with the following documentation
If you are an employed individual:
- Proof of income: your latest salary advice. If you earn commission or overtime, please provide the latest 3 salary advices (for both applicants if applicable).
- Latest 3 months personal bank statements (for both applicants if applicable).
- Personal Assets & Liabilities Statement for loan amounts over R1 500 000.
- Copy of your ID document (for both applicants if applicable).
- Copy of Marriage Certificate or ANC Contract (if applicable).
- Copy of the Purchase Agreement.*
- Latest 3 months bond statements.**
- Latest rates/Levy Statement/Utility account statement.**
Note
* Only required for clients that are applying for a New Purchase loan from SA Home Loans.
** Only required for clients that are switching their existing home loans with SA Home Loans.
If you are a self employed individual:
- Proof of income: Letter of Drawings from an Accountant (for all applicants if applicable).
- Latest 6 months personal bank statements (for all applicants if applicable).
- Personal Assets & Liabilities Statement.
- Latest 6 months business account bank statements.
- Latest 2 years’ Annual Financial Statements.
- Where Annual Financial Statements are older than 6 months to date, Current Management Accounts not older than 2 months signed by the applicant and accountant must be provided in addition to the Annual Financial Statements.
- Copy of your ID document (for all applicants if applicable).
- Copy of Marriage Certificate or ANC Contract.
- Copy of Registration Documents or Trust Deed.
- Copy of Purchase Agreement.*
- 12 months bond statements.**
- Latest rates/Levy Statement/Utility account statement.**
Note
* Only required for clients that are applying for a New Purchase loan from SA Home Loans.
** Only required for clients that are switching their existing home loans to SA Home Loans.
How long does it take to get a home loan approved in South Africa?
The loan approval process can take up to two weeks once all the required documents have been signed and submitted.
Can a foreigner get a home loan in South Africa?
Foreigners, resident or not, can legally buy property in South Africa, and apply for a mortgage. Individual banks will set their own terms, as well as needing to work within the legal requirements of the South African Reserve Bank.
Which bank is the best for home loans in South Africa?
The latest South African Consumer Satisfaction Index (SAcsi) results show that Capitec customers are the most satisfied, and that the bank’s clients, along with those of FNB, are the most loyal in the country. The SAcsi 2016 satisfaction scores for South African banks were: Capbitec – 83.1. FNB – 81.3.