When considering a home loan application, the following prerequisites are necessary:
- Demonstrating a robust credit history is vital before a bank entertains the approval of your home loan request.
- You need to be a minimum of 18 years old.
Furthermore, you'll need to
provide the following documentation:
For employed individuals:
- you should have a permanent job for six consecutive months
- Proof of income: your most recent salary slip. If you earn commission or overtime, provide the three latest salary slips (if applicable to both applicants).
- The last three months of personal bank statements (if applicable to both applicants).
- Personal Assets & Liabilities Statement for loans over R1,500,000.
- A copy of your ID document (if applicable to both applicants).
- A copy of the Marriage Certificate or ANC Contract (if applicable).
- A copy of the Purchase Agreement. (if applying for a new bond)
- The last three months of bond statements. (if switching existing home loan)
- The latest rates/levy statement/utility account statement. (if switching existing home loan)
For self-employed individuals:
- you should have been running your business for the past two years.
- Proof of income: A Letter of Drawings from an Accountant (if applicable to all applicants).
- The last six months of personal bank statements (if applicable to all applicants).
- Personal Assets & Liabilities Statement.
- The last six months of business account bank statements.
- The latest two years' Annual Financial Statements.
- If the Annual Financial Statements are older than six months, provide Current Management Accounts not older than two months, signed by the applicant and accountant, in addition to the Annual Financial Statements.
- A copy of your ID document (if applicable to all applicants).
- A copy of the Marriage Certificate or ANC Contract.
- A copy of Registration Documents or Trust Deed.
- A copy of the Purchase Agreement. (if applying for a new bond)
- Twelve months of bond statements. (if switching existing home loan)
- The latest rates/levy statement/utility account statement. (if switching existing home loan)
For Non-Residents, specific lending criteria apply:
- The loan amount cannot exceed 50% of the property's purchase price, in line with Reserve Bank regulations.
- Consent from the Reserve Bank is required before finalizing the transaction, and this application can only be facilitated by appointed dealers, including commercial banks.
- Proof of the deposit's origin must be provided, typically handled by the attorneys involved in the property transfer.
- A statement of foreign assets and liabilities must be provided.
- A copy of a valid passport.
- A copy of a valid work permit, permanent residence permit, or temporary South African