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Home Loans

Are you looking to make your dream of owning your own home a reality? We're here to help by guiding you through the process and offering pointers on choosing the right loan and the right lender.

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Which home loan provider is right for you?

While there are only six lenders that offer home loans in SA, choosing the right one and accessing the best rates and terms is something of an art.

Here you'll not only find a list of mortgage providers but you can also review our collection of bond originators so you can find the right professional to guide you through the home buying process.

Frequently Asked Questions

A home loan is a bit of a life conundrum, isn’t it?

On the one hand, it opens the door to fulfilling a lifelong dream of owning a house. On the other it holds out a debt repayment period of up to 30 years.

Buying a house is a huge investment in your future, but it comes with immediate concerns and considerations. For instance, what impact will the monthly repayment of a home loan have on your budget? Are you truly able to commit to such a long-term loan agreement? What type of interest rate will you have to pay? What about transfer fees and lawyer costs?

The answer to these questions lies in thorough research and comparison of the different home loans on offer in South Africa.

Where to start when applying for a home loan

If you already have a house you’re interested in buying, the best way to go about deciding which home loan provider to choose is to compare all offers and weigh up the pros and cons.

But first, you need to know exactly how home loans work in South Africa.

A home loan can only legally be provided by a registered bank or a registered credit provider that specialises in home loans. Every property bought through a home loan also doubles as surety in the event that the buyer defaults on payment. Additionally, the home loan process is overseen by the Banking Association of South Africa (BASA).

Once you’ve been approved for a home loan, the loan amount will be paid over to you for the purpose of paying for a property. You will then proceed to pay back the loan on a monthly basis (including interest) over a predetermined period that can extend up to 30 years.

If you have a sizable deposit, your loan amount will be lower, and if you have a good credit score you’ll enjoy lower interest rates.

Which Home Loan Provider Should I Choose?

Choosing a home loan provider doesn’t mean you automatically go with the options provided by your personal banker. You should take the following into consideration before settling on a home loan provider, whether it be your own bank, another bank, or a separate credit provider:

The current interest rate plays a significant role in your monthly repayments, causing it to increase or decrease as the rate fluctuates. The current repo rate in South Africa is 7.25% and the prime lending rate is 10.75%. Depending on what the South African Reserve Bank decides at its next meeting, these rates may increase or decrease yet again.

South African banks each offer competitive interest rates, which all link back to the prime lending rate. It's important to compare all these interest rate offers, before making a final decision.

It's also important to note the value of a large deposit when buying a house. The smaller the home loan amount, the sooner the loan can be paid back.

If you have no deposit, you would have to loan the entire amount, and will most likely only pay it back over the maximum repayment period which is 30 years.

Paying back the loan over 20 years will require higher instalments, but they will include a lower interest rate. The opposite applies for a 30-year term which will include a higher interest rate, but lower instalments.
There is the option of choosing a fixed interest rate, but this is typically only available for five years.

What Are My Home Loan Choices In South Africa?

The most popular home loan providers in South Africa include:

  • First National Bank
  • Absa Bank
  • Nedbank
  • Capitec
  • Investec

All these banks have different requirements when it comes to applying for a home loan and they each have unique offers as well.

FNB Home Loan

FNB’s requirements are as follows:

  • If you’re applying on your own, your income must be a minimum of R25 000 per month.
  • If you’re applying along with your partner or spouse, one of you must earn R25 000 or more per month.
  • The property you’re buying must be valued at R600 000 or more.
  • You cannot be under 18 years of age when applying for a home loan.
  • You must have a good credit score, and not be under debt review.
  • You must understand the terms and conditions that makeup part of the home loan contract at the time of signing it.

The documents you need to present to FNB when applying for a home loan are as follows:

  • A copy of the offer made to purchase the property
  • proof of income, including payslips and bank statements
  • If you are self-employed, you would need to be able to provide your business’ latest financial statements
  • Proof of residence
  • A copy of your South African identity card
  • A copy of your marriage certificate

You will then be asked to complete a set of forms that collectively make up your home loan application.

In addition to the home loan, FNB also offers insurance products including Home Owners Insurance and Life Assurance as well as the option to pay the registration and transfer costs in one lump sum or over several months.

If you already have an FNB home loan, you may also be permitted to apply for a Further Loan on top of your existing one. Keep in mind that this will affect your current interest rate, and you will not be able to take out the Further Loan with a fixed interest rate either.

Absa Home Loan

Absa offers up to 100% finance with their home loan offers, a choice between a fixed or fluctuating interest rate as well as the option to manage your home loan online, which means you can pay extra money into your home loan whenever you want to.

You can also apply for pre-qualification by using the Home Loan Pre-Qualification tool on their website.

Their requirements are:

  • A gross monthly income of R27 200
  • Proof of income
  • Proof of residence
  • Copy of ID card
  • Copy of marriage certificate (when completing a joint application)

ABSA offers home loans of up to 105%, which is ideal if you’re looking to cover additional costs. They also provide free training courses on owning a home, extra insurance products and up to 50% discount on bond registration costs when making use of their in-house panel attorney services.

Nedbank Home Loan

Nedbank offers up to 100% home loans, and you can check whether you’re pre-approved by using their online tool. The bank also offers a 50% discount on attorney fees for new home loan clients. Furthermore, they have an incentive in the form of R20 000 cash back when you apply online and your home loan is approved.

Nedbank’s salary requirement for a home loan is R27 200 a month, but for those who earn less than that, there is another home loan solution where you can apply for a loan of up to 115% and still get R5 000 cash back.

In addition to this, Nedbank also provides extra incentives when you buy an eco-friendly home. These incentives come in the form of saving 20% on your monthly utility bill. Your Nedbank home loan can also finance solar energy solutions which in turn will reduce your energy bill.

What you need to apply is:

  • An excellent credit record
  • A copy of the purchase agreement
  • A copy of your monthly budget, including all debt repayments
  • 3 months’ bank statements and 3x recent payslips

If you are self-employed you will need to provide:

  • Your ID card
  • 3 months’ bank statements and 3x recent payslips
  • A copy of your income and expenses sheet
  • A copy of the purchase agreement.

You can also apply for a building loan through Nedbank, for which you will have to provide several additional documents including:

  • Building contract
  • 6 months’ bank statements
  • Building drawings
  • Specifications
  • NHBRC certificate
  • Builder’s insurance policy
  • Certificates provided by engineers
  • Waiver of Lien
  • Home builder’s warranty

Capitec Home Loan

At Capitec you can apply for a home loan online, and get an answer back within 15 minutes. Capitec offers 50% off attorney fees, a competitive interest rate, as well as a dedicated banking consultant to guide you through the entire home loan application process.

You won’t need any documents at the time of applying online, but you will be asked to provide them later on. These include the usual bank statements, payslips, proof of residence etc.

If you want to loan an amount that is higher than R2 500 000, you would have to give the bank your income and expenses statement as well.

In addition to home loans, Capitec offers bond protection and homeowner’s cover as well as a refinancing option.

Investec Home Loan

Investec is a highly popular option for first-time homeowners. This is because the bank offers excellent rates and up to 100% finance in which extra costs can be incorporated. They are known for quick approvals and flexible instalment options, as well as for their 24/7 support centre.

Investec also offers Mortgage Protection Cover, which is an insurance policy that almost intuitively adjusts its premium each month as your home loan is paid.

Other extras on offer include sufficient building insurance, all risk cover, and even home and roadside assistance.

Like other banks, Investec has a full home buyers guide available on their website, which is helpful for new homeowners especially.

To apply for an Investec home loan, you would need to provide the following:

  • Proof of income
  • ID document/card
  • Electricity certificate (which serves as proof that the property has been inspected for electrical faults)

Enjoy the house that your home loan bought

No matter which home loan provider you settle on (after comparing all prices), you should look forward to and enjoy that feeling of accomplishment. After all, owning a house is not only the ultimate form of security, but it provides a space for you and your family to live out your dreams. A place where daily moments become forever memories, and a legacy you can leave to your children.

Home loan providers in South Africa know that a home loan is about far more than just the action of buying a house. It is about family and the future that they’ll have in a place they can call their own. Here’s to you owning your own home in 2023 and beyond.

List of direct lenders offering Home Loans

  1. SA Home Loans Home Loan

    SA Home Loans

    • Leading home loans
    • Term up to 30 years
    • Switch Your Existing Bond
  2. FNB Home Loan


    • Affordable Repayment Terms
    • Competitive Interest Rates
    • Interest from 10.5%
  3. Nedbank Home Loan


    • Competitive Home Loans
    • Term up to 25 years
    • Interest from 3%
  4. RMB Home Loan


    • Personalised Home Loans
    • Flexible Repayment Options
    • Competitive Interest Rates
  5. Investec Home Loan


    • Get 100% Finance
    • Mortgage Protection Cover
    • Term up to 30 years
  6. Absa Home Loan


    • 100% Home Finance
    • Term up to 30 years
    • Interest from 11.25%