The home loan industry has undergone a number of changes, especially following the credit crunch of 2008. South African banks, like other banks around the world, have become increasingly cautious about whom they approve for home loans.

While the standard requirement for people looking to buy a home is a 10% deposit, recent changes have allowed for the resurgence of 100% home loans.

A number of SA banks are now offering potential homeowners a chance to buy their first homes even if they have low income.

Which SA banks are offering 100% home loans?

The four major SA banks are now offering access to 100% home loans.

First National Bank (FNB) offers “housing you can afford”. Through its Smart Bond Home Loan, the bank offers a tailor-made loan for individuals earning a minimum gross monthly income of R3500 and a maximum of R25 000.

This is a 100% bond finance, so no deposit is required.

Borrowers have the option of fixing the interest rate for a 5 year period.

Standard Bank has relaxed its lending criteria and no longer requires customers to pay a deposit if they are buying a house priced up to R1.5 million.

Absa bank has 100% home loans which are extended to clients in the affordable market.

Nedbank provides 100% loans to any of its customers based on the merit of the application.

What SA Banks are looking for:

  • South African citizens with a valid South African ID
  • Applicants who have a salary that is paid into their bank account on a monthly basis
  • Individuals with no judgements or defaults against their names
  • The property must be acceptable for lending purposes
  • Bond instalments must be paid via debit order
  • Applicants must be permanently employed for at least a year
  • Applicants must have no late payments within the past 12 months