FAQ Support

We offer a simple step-by-step process.

10 easy steps to make the process of getting your home loan as simple as possible:

1. Arm yourself with info

With our handy Affordability Calculator, you can calculate the size of the home loan you could qualify for, and how much you can afford.

2. Choose an application option

Apply online with your details and we will contact you once we get started with your application. You can also call our friendly customer consultants on +27 61 492 3004 to discuss your home loan needs.

3. Send us your documentation

Sending all the documentation required is essential to processing your application. Getting this together ahead of time will help speed up the approval process.

4. Credit approval

Our credit team will now complete the credit assessment, using the supplied documentation as well as information obtained from the credit bureau status. If this is all in order, you will receive notification of approval of your bond application. This approval is subject to the completion of the valuation. If there is a problem, you will be contacted by a consultant to discuss a possible solution.

5. Property valuation

An expert appraiser will arrange an appointment to value the property.

6. Evaluate and sign a Letter of Acceptance (LOA)

Subject to the credit approval, we will prepare a home loan proposal, called an LOA. This document details the costs, interest rate, monthly instalments, and other important information for you to evaluate and sign.

7. Conveyancing

Our national panel of attorneys will prepare all the necessary bond registration documents and will make an appointment with you to sign them.

8. Lodgment

Lodging your bond registration is the next step and happens immediately after you sign your documentation with the attorney.

9. Wait for registration

Registration of your bond at the Deed’s Office will take approximately 12 weeks.

10. Personalised service

Once your home loan is registered, we will continue to provide personalised service and attention to ensure that you get the most from your home loan as a part of the family.

 The interest rate is set based on many variables – most of which are determined by the client. How much deposit can you afford to put down towards the purchase? Typically, a larger deposit will qualify you for a lower interest rate.

There are many more options to consider than just the interest rate when choosing the best home loan product for you. And the interest rate may be different, depending on the option you choose.

The best way is to take the time to make an application. No one application or set of circumstances is the same. We prepare a no-obligation proposal for you to consider. Call a specialist consultant on +27 61 492 3004 and get underway.

 Use this list to make sure you have all the correct documentation to apply for your home loan.

Documents required

Your bank’s valuation fees

Owing to the introduction of the National Credit Act, banks no longer charge their clients valuation fees. Instead, this fee is now incorporated into the bank’s initiation fees.

Your bank’s initiation fees

The National Credit Act now allows finance providers to charge their customers up to R6 037.50 (R5 250+VAT) initiation fees.

 If you have a home loan, it is important to have life insurance. Having sufficient life insurance to cover the bond balance in the event of death or disability will benefit both you and your family and/or dependents.

If you don’t have life insurance and the heirs of your estate cannot maintain the remaining bond instalments after your death,  they may lose the property, altogether.

 Decide what it is you’re looking for. Think about:

• Your price range – your monthly budget and what you can afford.
• Your ideal neighbourhood. What other areas would you be happy to live in?
• Would you prefer a free-standing house or the additional gated security of a complex?
• Size of house/flat/land.
• The number of bedrooms/bathrooms you require.
• Do you need outdoor space? (garden, balcony, pool, braai area etc.)
• Parking requirements.
• What facilities do you need to be close to (schools, shops, parks etc.)
• Are you prepared to renovate?

Look, look and look again:

• Newspapers/magazines – scour the weekly property sections that come in the Saturday or Sunday newspapers. There are also free property magazines that come out weekly.
• Websites – some websites operate independently of estate agents. Properties listed on these sites may be slightly cheaper as the seller may not need to pay the agent’s commission which can be as much as 7.5% of the selling price.
• Most estate agencies will also list the properties they’re selling on their own websites, plus there are sites that show properties for sale by all agencies.
• Visit show houses. Most show houses are on Saturdays or Sundays and generally start at 2 pm and end at 5 pm. This is probably the best way to view a property. Photos can tell you a lot, but they won’t show you the neighbourhood and definitely won’t highlight problems with the property or the neighbourhood.

Take a good look at what you can afford:

The purchase of a new home comes with a string of new bills. Not only will you now have a monthly bond instalment to pay, but there are a number of additional costs which you may not have had to pay as a tenant. These include:

• Rates payable to the municipality.
• Levies (if you’re in a complex/flat).
• Electricity and water.
• Household insurance (for the contents of your home) and homeowner’s insurance (for the building).
• Repairs and maintenance (looking after a garden, painting the house, plumbing problems etc).

Make sure you understand the difference between “freehold”, “sectional title” and “share-block” developments:

• Freehold or full title describes the transfer of full ownership rights when you own a property, which includes the building and the land it is built on. These kinds of properties include freestanding houses, cluster houses etc.
• The sectional title describes separate ownership of units or sections within a complex or development.
• When you buy into a sectional title complex, you purchase a section or sections and an undivided share of the common property. These are collectively known as units. Sectional title dwellings comprise mini sub-type houses, semi-detached houses, townhouses, flats or apartments and duet houses.
• In a share block the property is owned by a company and each flat is allocated a number of shares in the company.
• Very few financial institutions will bond share-block flats and those that do normally require a hefty cash deposit and will often charge a higher lending rate than they would for a sectional title flat.
• All of this means that if you’re interested in a share-block property you will need to have a fair amount of capital upfront.

Be aware of the hidden costs involved in purchasing a home:

In addition to the purchase price of the property, there are a number of upfront costs involved in buying a home. It’s important that you’re aware of these additional expenses so that you can save up the money or arrange a loan to cover these costs. Below is a brief explanation of these items:

• ‘Transfer duty’ is paid to SARS every time a property changes hands, and is based on the value of the property. Properties with a value of R1 000 000 or less are not subject to transfer duty.
• ‘Transfer fees’ are payable to the transferring attorney for transferring the property into your name, and are calculated on a regulated sliding scale based on the purchase price. Note that the R1 000 000 exemption does not apply to ‘transfer fees’, only to transfer duty.
• If the property is being purchased from a developer, no transfer duty is payable. However, VAT will be payable on the purchase price.
• You will also need to pay an attorney to register your bond with the Deeds Office. This is known as the bond registration fee.
• The attorney will also charge you for other smaller, variable costs such as FICA fees, electronic instruction fees and postage. These amounts may differ from attorney to attorney but typically come to around R2 200.

Below is a table of approximate costs to give you an idea of what to expect. These amounts include vat and may differ from attorney to attorney.

Get your affairs in order:

Pay your bills on time every month in order to ensure that you have a good credit rating. It’s also a good idea to try and clear as many debts as possible before applying for a home loan since lending institutions will look at existing debt obligations when assessing whether or not to approve a loan application.

Contact SA Home Loans to find out what bond you qualify for. Although pre-approval doesn’t guarantee a home loan, it does give you a clear idea of what you can afford to spend and means you are more likely to be taken seriously by the seller. As a rough guide, your instalment should not be more than 25%-30% of your family’s combined monthly income, before tax and deductions. This is known as your ‘Payment to Income’ (PTI) ratio.