To get a first home loan, a bank will want your ID, proof of income, three months’ bank statements and a signed offer to purchase, and it must check that you can afford the instalment before it lends. Some banks finance more than the purchase price to help with bond and transfer costs, but terms differ by bank and change.
First-time buyers face the same affordability test as every other applicant under the National Credit Act. What differs is the bank’s first-time buyer offer. For example, Absa advertises finance of up to 110% and 50% off bond registration fees, and Nedbank says first-time buyers could get up to 109% of the property value. Confirm the current offer with each bank.
Eligibility Requirements at a Glance
Criteria are set by each bank, so they are not identical everywhere. In general you should expect to need:
- A valid South African ID or passport
- A regular, verifiable income
- A credit record that supports a long-term secured loan
- A signed offer to purchase for a specific property
The banks we checked do not publish a minimum deposit or minimum income for first-time buyers on the pages we could open, so ask the bank. Some banks will finance more than the price; Absa and Nedbank figures are above, and reports of the Nedbank percentage differ, so confirm it with Nedbank.
If your joint household income is modest, ask about the First Home Finance subsidy (formerly FLISP), which can help with a deposit, a smaller loan or attorney costs. Confirm the current income band and criteria with the Department of Human Settlements or your bank.
Income and Affordability Requirements
Credit providers must take practical steps to assess whether you can afford the instalment. Your discretionary income is your gross income minus tax, UIF, maintenance and all other payment obligations. The bank must also consider the debt shown on your credit bureau record. The National Credit Regulator explains the affordability rules in more detail.
For salaried applicants, the NCR says providers should ask for the latest three payslips or bank statements showing three salary deposits. For self-employed or informally employed applicants, expect three months’ bank statements or the latest financial statements. If your income varies, the provider averages it over at least three pay periods.
Budget for costs on top of the price. Transfer duty is calculated on a SARS table: 0% on property value up to R1,210,000, 3% on the value above that up to R1,663,800, and higher rates above R1,663,800. The SARS page shows no change for the year from 1 April 2026. Bond registration and attorney costs are separate, so get written estimates.
Credit and Financial Requirements
The bank checks your credit bureau record and every debt obligation on it. Under the National Credit Act you can get your credit bureau information free of charge once every twelve months, and you can challenge information that is wrong. Credit providers must be registered with the National Credit Regulator.
A deposit is not required by every bank, but ask what each bank requires and how a deposit affects the rate. If you apply with someone else, the bank assesses what both of you earn and owe.
Documents and Verification Required
Banks publish their own checklists, but the core documents are consistent. Nedbank lists a valid ID or passport, your latest payslip or other proof of income, bank statements for the past three months and a copy of the offer to purchase, with each applicant supplying their own set. Standard Bank asks for a payslip, three months’ bank statements and a valid ID copy once the seller accepts your offer.
- Valid South African ID or passport
- Latest payslip or other proof of income
- Bank statements for the past three months
- The signed offer to purchase or sale agreement
- If self-employed or on variable income: Absa asks for six months’ payslips, so ask your bank what it wants
Your bank may ask for more, so get its checklist before you submit.
How to Apply and Improve Approval Readiness
Banks accept applications once the seller has accepted your offer. Start from the bank’s own page, for example Absa’s home loan application or Nedbank’s first-time buyer steps, and compare offers from more than one bank.
- Check your credit record and fix errors before applying
- Reduce small debts and store accounts, because every obligation counts against your affordability
- Keep your bank statements clean, with no unarranged overdrafts or returned debit orders
- Avoid taking new credit while the application is open
- Save for transfer, bond and attorney costs
Frequently Asked Questions
Do I need a deposit for a first home loan?
It depends on the bank. Absa and Nedbank advertise first-time buyer finance of up to about 110% and 109% of the property value, but approval depends on affordability and the bank’s discretion. Ask the bank for its current terms.
What documents do banks ask first-time buyers for?
ID or passport, latest payslip or proof of income, three months’ bank statements and the signed offer to purchase.
What extra costs should I budget for?
Transfer duty (0% up to R1,210,000 on the SARS table), bond registration and attorney fees, and other costs your conveyancer will quote. Ask for a written estimate.
Can I apply with someone else?
Yes. Nedbank says each applicant supplies their own documents. The bank assesses both applicants, so confirm with the bank how a joint application is treated.
What is FLISP?
FLISP is now called First Home Finance, a subsidy for first-time buyers within a qualifying household income band. Confirm the current band and process with the Department of Human Settlements or your bank.
Can I check my credit record before I apply?
Yes, you can get your credit bureau record free of charge once every twelve months.
Bank terms, transfer duty tables and subsidy bands change, so confirm current figures with your bank, SARS and your conveyancer.
See loan requirements and browse all finance and funding requirements.