If you’re new to property buying, it’s essential to understand how home loans work in South Africa. This quick guide outlines the process, highlights what to expect, and shows how working with a bond originator like BestBond can simplify everything—at no cost to you.
What is a Home Loan in South Africa?
A home loan, also known as a mortgage, is a long-term loan from a bank that helps you buy a house or flat. In South Africa, home loans are typically repaid over 20 to 30 years, with interest added to each monthly instalment.
Depending on your credit score and income, you could qualify for a 100% bond—meaning no deposit required.
➡️ Use our affordability calculator to estimate how much you could qualify for.
How Home Loans Work in South Africa: Step-by-Step
Here’s a simple breakdown of the process:
1. Check Affordability
Understand what you can realistically afford based on your income and expenses.
2. Get Prequalified
(Optional) Prequalification helps you shop confidently and strengthens your offer.
3. Find a Property
Search within your approved price range and make an offer once you find the right home.
4. Apply Through a Bond Originator
A bond originator like BestBond submits your application to multiple banks, compares offers, and negotiates on your behalf.
5. Accept an Offer and Sign
Once approved, choose the best deal and complete the paperwork with attorneys.
📘 Read next: What You Need to Qualify for a Home Loan in SA
Why Use a Bond Originator?
A bond originator acts as your personal home loan expert. Here’s how BestBond helps you:
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Applies to multiple banks at once
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Compares interest rates to find the best deal
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Handles paperwork and follow-up
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Charges no fee—we’re paid by the bank
👉 More info: Why Use a Bond Originator
Quick Tips for Getting Approved
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Update your profile if there is any issues at TransUnion and Experian
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Save for a deposit (5–10% is helpful, though not always required)
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Prepare 3 months of payslips and bank statements
Summary
Now that you understand how home loans work in South Africa, you’re better prepared to navigate the home buying process with confidence. Partnering with a bond originator like BestBond can help you secure the best deal—without the stress or cost.
Contact BestBond for free help with your bond application, or explore more guides in our Home Loan Blog to stay informed.
