At first glance, it could seem as though securing home loans for foreigners is an almost impossible task, but equipped with the correct information your chances of getting the required property finance can increase ten fold.
The tight lending criteria of our local banks, coupled with the additional requirements of the National Credit Act (NCA), has made securing a home loan in South Africa tougher even for South African citizens.
As a foreigner, you are faced with the added trouble of dealing with the Home Affairs office, and the further restrictions imposed by the South African Reserve Bank.
The banks are particularly weary of lending to foreigners, and therefor often require extra official documents to assess the risk profile of each individual involved in the purchase of the property.
Sourcing these extra documents can be very tough, especially when dealing with the Home Affairs office.
Recently, a USA professor in virology applying for property finance in South Africa, could not get a work permit for six months even though he is a recognised international expert in AIDS treatment.
The first step to securing a home loan as a foreign would be to obtain all the required permits, certificates and employment contracts.
Next you will need to manage your expectation of the loan amount you are likely to secure. As a non-resident, you will be limited to 50% of the property purchase price.
Applicants living and working in South Africa are likely to receive loans up to 80% of the property purchase price.
Read More About: Home Loans For Foreigners Buying In SA
Before you sign an offer to purchase, and because each application is very unique, speak to an independent bond originator about your options.