Home loans are perfect for people who want to buy a residential property and need to have the funds to finance it. A home loan can be taken over a period of 15 – 20 years, sometimes even longer. There are many benefits to a home loan including the ability to choose your repayment period and taking out additional funds to do renovations to your home.
A home loan in South Africa can help first time buyers to purchase a property, especially since it can be very expensive and very few people have the means to do this on their own. You can speak to a consultant from a bank to find out what you may qualify for and how the process works, to ensure that you quality for the right amount and that you’ll be able to afford the repayments.
Average Home Loans
According to PrivateProperty.co.za, the average home price has risen by over 14% during the last two years to R953 000, and the average approved bond amount by the same percentage to R788 000. Over the same period, about 47% of home loan applicants were first-time buyers, and the average home price paid in this sector of the market rose by almost 8% to R648 000, while the average approved bond amount increased by 9% to R601 000.
Home loans are often requested by first time buyers and this means that banks also have a lot of loan applications that don’t get approved. In order to improve your chances, ensure that your income can easily handle your required home loan, and that you have a good credit history. This will improve your chances significantly. If you are self-employed, you may need to provide additional documentation, like the last six months’ bank statements and a detailed income and expense sheet.
