How Much Will The Banks Give Me if I Apply For a Home Loan

SA Home Loans: South African banks currently all vary when it comes to granting home loans.

Will I get 100%, or must I give a deposit to qualify?

The short answer would be yes and no. Why? Well as mentioned, each bank as it's separate qualifying criteria along with their individual appetite for loan to value (LTV)

LTV is the relation between the value of the property and the bond on that property. So, if a bank has a LTV cap of 90% it means that the bank is only willing to grant a bond of 90% of the purchase price (when you are buying) or value (if you are applying for a 2nd bond)

So, if 90% is the cap and you have a home to the value of R1 000 000 or you are buying a home for that price, the bank won't give you a home loan of more than R900 000.

So, lets sum up what percentage each of the banks are offering.

When buying a home, you will automatically qualify for a 105% home loan (purchase price plus attorney fees) if you have an income of less than R15 000 pm (single or joint)

All other purchases are as follows:

ABSA Home Loans:
90% of the purchase price up to R1.5mil if you bank at ABSA
70% if you don't bank at ABSA

Standard Bank Home Loans:
90% up to R2.5mil irrespective if you bank there or not

FNB Home Loans:
100% up to R2mil irrespective if you bank there or not

Nedbank Home Loans:
100% up to R3mil irrespective if you bank there or not.

If you are interested in applying for SA Home Loans now or in the near future don't hesitate to contact us if you need more information or advice.