Capitec’s credit range has historically centred on personal loans, credit facilities and credit cards, with business and vehicle finance added through its acquisition of Mercantile Bank. Whether a residential home loan is currently offered under the Capitec brand is something to confirm with the bank directly, because product ranges change.
What does not change is what any South African bank requires before granting a bond. The criteria below apply across lenders, so they are the right thing to prepare whether you end up borrowing from Capitec or from another bank.
Eligibility Requirements at a Glance
Every South African home loan application is assessed against substantially the same entry criteria.
- Be 18 or older with full contractual capacity
- Hold a valid South African ID, or a valid passport and qualifying permit if you are not a citizen
- Have a regular, verifiable income — salaried, commission-based or self-employed
- Have a credit record that supports a long-term secured obligation
- Not be under debt review, sequestration or administration
- Have a signed offer to purchase for an identified property
Income and Affordability Requirements
The bank works out the largest instalment your income can carry after existing commitments, then converts that into a loan amount at the prevailing rate.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
The instalment is stress-tested against a higher interest rate than today’s, so the amount you qualify for is deliberately conservative. Small existing debts matter more than people expect: a vehicle instalment plus a few store accounts can remove hundreds of thousands of rand of borrowing capacity.
Bond costs are paid up front and are not part of the loan: bond registration and transfer attorney fees, deeds office fees, transfer duty payable to SARS above the exemption threshold, and rates and levy clearance certificates.
Credit and Financial Requirements
Your credit bureau record determines both approval and the personalised rate.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
The property is valued by the bank. If the valuation comes in below the purchase price, the bank lends against the lower figure and you fund the difference in cash. A deposit improves the rate and reduces the loan-to-value ratio.
Building insurance is compulsory for the life of the bond, because the property is the bank’s security. You may choose your own insurer provided the cover meets the bank’s requirements.
If you are a first-time buyer within the qualifying household income band, check whether you are eligible for the FLISP subsidy administered through the Department of Human Settlements. Confirm the current income bands with the department, as they are revised periodically.
Documents and Verification Required
Each applicant needs a complete set.
- South African ID document or smart card for every applicant
- Latest three months’ bank statements
- Latest payslip, or six months’ payslips where income includes commission
- Latest IRP5 or a letter of employment
- Proof of residence not older than three months
- The signed offer to purchase
- For self-employed applicants: six months’ business statements, two years’ financial statements and an accountant’s letter
- Marriage certificate, antenuptial contract or divorce order where applicable
How to Apply and Improve Approval Readiness
Confirm with Capitec what home loan products it currently offers. Whatever the answer, submit to more than one bank — either directly or through a bond originator, whose service is normally free to the buyer — and compare the rates offered.
- Get pre-approval before making an offer so your budget is realistic
- Clear small accounts before applying
- Save for both a deposit and the transfer and bond costs
- Do not take new credit or change employers while an application is running
- Negotiate the rate; the first offer is rarely the best available
- Have the property independently inspected — the bank’s valuation protects the bank
Frequently Asked Questions
Does Capitec offer home loans?
Confirm this directly with the bank. Its product range has expanded over time, and published lists date quickly. If it does not, the same application pack works at any other bank.
Do I need a deposit?
Banks do grant bonds for the full purchase price, particularly to first-time buyers with strong records. A deposit still improves the rate and lowers the instalment, and you need cash for transfer and bond costs regardless.
How long does registration take?
Approval can be quick, but transfer and registration at the deeds office typically take two to three months, depending on clearance certificates and deeds office turnaround.
Can two people apply together?
Yes. Both incomes count towards affordability, and both applicants are jointly and severally liable for the entire debt.
Product availability, rates and transfer duty thresholds change. Confirm what Capitec currently offers directly with the bank, and check current figures with your conveyancing attorney and SARS.