Applying for a Home Loan

LIST OF INFO NEEDED

• Copy of ID (If you are married IN Community of Property you need both spouses ID’s)
• Marriage Certificate
• Offer to Purchase
• Employment Details
• Proof of income:
  • Salaried earner – copy of latest payslip
  • Salaried earner (basic & Commission) – 6 months payslips -
  • Commission only – 6 months payslips & 6 months bank statements
  • Self Employed – 6 months personal bank statements. Letter from the auditor to confirm monthly drawings and audited set of financial statements.
• 3 months Bank Statements.
• A list of ASSETS and LIABILITIES
• Monthly Expenses and Income
• The banks may ask for latest SARS assessment
• If property is under sectional title, copy of the financials from the body corporate and name of the managing agent

The National Credit Act which came into effect on 1 June 2007 has forced the financial institutions to scrutinize your bond application. They have to make 100% sure that you can afford to pay the bond every month. If it can be proved that the bank has recklessly granted you a bond the bank will be liable for the full bond amount and will face a huge fine from the Credit Regulator.

How much do you qualify for?:

The Banks base their bond approvals on your TOTAL disposable income. This means they deduct tax and all monthly expenses (including groceries etc) from your salary and whatever is left is your DISPOSABLE income.

If you have R10000 left after all deductions per month you will qualify for a bond of about R950000. Remember, you can also apply for a bond jointly and thereby qualify for a bigger bond amount.