Home Loans

Mortgage bonds and home loans from South African banks. Compare interest rates, deposit requirements and qualifying criteria for residential property finance.

A home loan (mortgage bond) in South Africa is registered against the property at the Deeds Office and is typically repaid over 20-30 years at a rate linked to the South African Reserve Bank's prime lending rate, either on a variable or, less commonly, a fixed-rate basis for a limited initial period. Lenders are regulated under the National Credit Act and, for the banks themselves, supervised by the Prudential Authority.

Most banks will lend up to 100% of the property value (zero deposit) to qualifying applicants with a strong credit record and affordability profile, though a deposit of 10-20% generally improves the rate offered and reduces the total interest paid over the loan's life. Government-backed support is available for qualifying lower-income buyers through the Finance Linked Individual Subsidy Programme (FLISP), administered by the Department of Human Settlements.

To qualify you will generally need a South African ID or valid work permit, three to six months of bank statements, proof of income (payslips or, for the self-employed, financial statements), and a signed offer to purchase. Banks assess affordability using their own formula based on gross income, existing debt and expenses, and will also register a bond over the property as security, meaning the home can be repossessed if repayments are not kept up.

When comparing home loan offers, look beyond the headline rate at the initiation fee, monthly service fee, and whether the bank offers an attached flexible or access facility that lets you redraw extra payments — these can meaningfully change the real cost and flexibility of the loan over a 20-30 year term.