What is Home Loan?
A loan is advanced to a person to assist in buying a house or flat.
How To Qualify For a Home Loan In South Africa
The five most important documents for a home loan application
Speaking to the general criteria, Dyer adds that to apply for a home loan, homebuyers must be 18 years or older, permanently employed for at least six consecutive months, or self-employed for the past two years.
In addition, the following five documents are required to complete your application and give you the greatest chance of successful approval:
Proof of income: “The majority of the banks will ask for your last three pay slips from your employer (or accountant if you are self-employed) as proof of regular income.”
Bank statements: Banks will request the last three months’ bank statements from your personal account. The banks will use these to verify your monthly income and expenditure, which includes monthly debt repayments and living expenses. “If you are married in a community of property or are applying for a joint home loan, your partner’s bank statements will also be required.”
A copy of your ID: “Make sure that you have a copy of your South African ID document scanned and ready to go.”
Personal assets: The loaning banks will request a bird’s eye view of your personal assets and liabilities through your bank statement. “
The purchase agreement: “The banks will need to see a copy of the purchase agreement on the home that you are wishing to purchase.” Remember that a valuator from the bank is sent around to the property to make sure that the property is valued correctly. A lot of these take place electronically these days, however, it remains a key requirement for final bond approval.”
What is the minimum salary for a home loan in South Africa?
Research from Lightstone Property shows that the minimum salary to buy a home would be: R22 600 in the Western Cape, where the average property price is R680 000 (the most expensive out of all the provinces). R12 600 in the Eastern Cape, where the average property price is R380 000 (the lowest of all provinces).
Is it hard to get a home loan in South Africa?
The minimum credit score for a home loan in South Africa is around 640. A score of 600+ will give you a fair chance of home loan approval – although this may vary according to which bank you use. A score of 670+ is considered an excellent credit score, significantly boosting your chances of home loan approval.
What do I need to qualify for a loan in South Africa?
What do you need to apply for a personal loan?
- Valid South African ID.
- Proof of residence no older than 3 months.
- 1 month’s payslip.
- 3 months’ most recent bank statements.