How to secure a 100% Home Loan

Which banks are currently offering full 100% bonds?

The four major mortgage providers in South Africa are:
ABSA Home Loans  FNB Home Loans  Standard Bank Home Loans  

Although the property market may go through its ups and downs, one of the few things that does remain relatively constant is the demand for 100% home loans.
The banks are always changing, re-evaluating and assessing their lending policies to ensure they’re keeping pace with the current market conditions.

For this reason, you should always speak to your bond originator before you decide to sign an Offer-To-Purchase on a new property.
Your bond consultant will been able to tell you what the banks are currently willing to offer you.

Currently the requirements for a 100% bond are:

A Willing Lender:
Before you can hope to secure a 100% bond you’ll need to find out which of the banks are currently offering mortgage up to 100% of the value of the property.

A Clean and Clear Credit Record:
Your credit rating and credit record are among the most important factors to consider whenever you are applying for credit.
The banks use these ratings to gauge how well you conduct your accounts. The higher your rating, the more likely you are to be approved for the full loan amount.
The interest rate on your bond is also determined, in part, by your credit rating.

Property Value and Types of properties:
Bargain Deals
In some situations, you may find that the value of the property far exceeds the price you’ve paid.
In these situations the banks are often very keen to grant you a full 100% bond, as their risk is covered by the extra value. If anything goes wrong the bank knows that you will be able to settle the bond by selling the property.

Repossessed Properties
Currently, the banks each have loads of repossessed properties on their books. In an effort to sell these properties they have launched a campaign to grant full 100% bonds on these sales.

Your Own Affordability:
And finally, the bank will not grant you a full 100% mortgage if you are not able to afford the monthly bond repayments.

24 Comments For This Post

  1. John Davies Says:

    I need 100% mortagage in SA for buy to let residential or commercial property.

    I’m not South African & I live in UK. My salary is > £50k per year.
    Just wondering if this is feasible.

    Willing to get advice via email re banks that offer such facilities and how I can go about it. Cheers

  2. Property Loans Says:

    Hi John, 100% mortgages are only currently available to South African citizens. Although, this ruling could change in the future.

    I would suggest subscribing to our email newsletter if you’d like to receive a notice if/when this 100% bonds become available to foreign buyers.

  3. Mimi Says:

    Hi, I want to find out a person that earns a gross amount of R20526.50pm and a nett of R13372.48 pm, under normal circumstances, approximately how much bond would they qualify for? I know the Credit act applies and all the other expenses/credit are taken into consideration.

    I’ll appreciate your assistance.

  4. Paling Says:

    Hi Mimi,

    You will be allowed to commit up to 30% of your gross income to debt repayments.
    If you are buying with someone else, that person’s gross income can be added to yours.
    You also need to take into acount existing debt and those installments.
    Your approximate max loan amount (under 14% interest rate conditions for safety’s sake) is then given by:

    {(GrossIncome x 0.3) – ExistingDebtInstallments} x 80

    E.g. if you’re buying on your own, and you’re paying R1200 per month on other debt, then

    {(20526.50 x 0.3) – 1200} x 80
    = { 6157.95 – 1200} x 80
    = 4957.95 x 80
    = R396,636.00 max allowable debt

    This should give you a rough idea, work with +/- R50,000.00 on this. You can also Google for calculators.

    Whether or not you’ll receive a bond for this much also depends heavily on the property value, how much you offered, and anticipated market movement (see my previous comment).

  5. yuan prins Says:

    want to buy my parents house with a 2nd home on with an rental of R3000 per month for the next 5 years and at the moment I am paying R5000 rent for an mine house

    house price R1050000 and the value is +- 1200000

  6. Elienah Says:

    I’m with you on this Annelise. We spent a lot of money on rentals. we want to buy our own houses but with all these requirements and procedures we will probably be one of those unfortunate to own a house.

  7. EDDIE MULLER Says:

    Hi can you please help . Need a bond of R850 000.

  8. Joy Says:

    I want to buy a house..I don’t have a deposit. I can probably raise the Legal fees only. Who’s the best bond originators..

  9. Paling Says:

    @ Andrew:

    The risk to the bank is very high when lending to foreigners, they will only grant about 40-50% of the value.
    So with your 500k salary you should be able to get a bond of about max 450k on a 900k property. Or borrow 400k on an 800k property, etc…
    So at max debt you can buy a R900k property, and you’ll need R450k cash.

    For foreign citizens it’s tough to buy in SA, for locals its actually quite easy and fairly uncomplicated.

  10. Hein Says:

    Hi, I am currently a SA citizen but live in the UK. I came over straight from University so never worked in SA. What impact will this have on my credit score in SA (I still have a bank account, but rarely use it, as all my accounts are in the UK). Will I be able to qualify for a 100% Home Loan if I want to buy-to-let (BTL).

    If not, what % deposit will I have to put down for BTL property? I will be a first time buyer, but not sure whether they still allow 100% loans for BTL properties.

  11. Chantelle Says:

    good day

    Can you please hellp, i need a bond for R640 000, how do i qualify for that amount? please send me the details. we are first home owners that wants to buy a house,

    hope to hear from you

    thanks

  12. Dr.Wenta Says:

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    Do you have a bad credit or are you in need of money to pay bills,LOAN to start up an investment,LOAN to buy cars,LOAN to do what pleases you? i want to use this medium to inform you that i render reliable beneficiary assistance as i will be glad to offer you LOAN at low interest rate which is 2%.if interested contact us via:pfisterwentaloanlender@gmail.com
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  13. Charles Says:

    I have put in an offer for a house to be sold on auction. The actioneer gave me a Condition of sale document, which fnb will not accept when I applied for a bond, on my offer price. Are this a rules at all of our SA banks?

  14. Louis Sangerhaus Says:

    Hi there.
    If me and my wife wants to purchace a house,together and she have 2 judements on her name,it is paid of but stil shows on her credit check.Will we get a 100 percent bond.I have a clear record.

  15. Kirsty Says:

    Hi, I am currently a temporary resident from the UK (not yet a SA Citizen). I live with my Boyfriend who is a SA Citizen and we would like to look at buying a property rather than wasting our money on renting. Is there any way we can do this as I believe we would need both our incomes to qualify but understand I will not be considered as a non Citizen.
    Any advice you may have would be very much appreciated.
    Thanks – Kirsty

  16. pearlwell Says:

    Im married to foreigner and am South African, can we buy house together?

  17. Property Loans Says:

    Hi Pearl, you could definitely buy a house together. The only concern would be the loan size you’ll be granted. If your partner banks his income in a foreign bank account you might only qualify for a 50% home loan.

  18. Maria Feliz Martins Says:

    i would like to apply for second home loan to purchase a business
    would it be 100% approved

  19. Property Loans Says:

    Hi Maria, while 100% bonds are available currently they are not available to clients who are applying for a further bond or second home loan. The maximum the banks would be willing to lend you at the moment would be up to a maximum of 90% of the property value.

  20. noluthando Masondo Says:

    hi, I need a bond for +-R350 000, how do i qualify for that amount? I am a first home buyer who wants to buy a house,

    Thanks

    Kind regards
    Noluthando

  21. jones Says:

    I and my wife want to buy ahouse which coast R695 000.00 we are renting ahouse forR3900.00 athe moment and our jont salary is R21 000.00 per month. My credit recod is not clean but my wife is cleane . So is it posible for us to qualify for the 100% loan.

  22. Pricilla Musson Says:

    Hello almost everyone. I was just surfing the online world for a great time and came upon your site. Wonderful post. Thank you a great deal for sharing your knowledge! It happens to be wonderful to find out that some individuals nevertheless place in an effort into controlling their websites. I am going to make sure you examine back from time totime.

  23. David Molelekeng Says:

    Hi my name David, I earn R8200 and just received an offer to purchase of R360,000 for the house I am renting so me and fiance who earn R2500 we are want to go combine for this house cos we have been staying in this house for while and we like this house.

    Please help me what can I do becos my bank is willing to give R300,000.

    Assistantance will be highly appreciated

  24. CJ Says:

    Hi, I want to buy a home to rent out. I’m a business owner and the business is run in a partnership. Is it possible to get a 100% bond?

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