To get a home loan in South Africa you need to be 18 or older with the legal capacity to sign a contract, have income you can prove, pass the lender’s credit check and affordability assessment, and buy a property the bank values highly enough to secure the loan. You will be asked for your ID, proof of income, recent bank statements, proof of address and the signed offer to purchase.
Meeting these home loan requirements makes you eligible to apply, not approved. Each bank sets its own home loan lending criteria on top of the legal minimums, and it decides the amount, the interest rate and the term. The same application can get different answers from different banks.
Eligibility Requirements at a Glance
- Age and capacity: 18 or older and legally able to contract.
- Identity: a valid South African ID, or a passport with a permit or visa where the lender accepts foreign applicants.
- Income: regular income from employment, self-employment or a pension that you can prove.
- Credit record: accounts paid up to date and no current debt review, which most lenders treat as a bar to new credit.
- Affordability: enough income left after expenses and existing debt to carry the monthly bond instalment.
- The property: a bank valuation that supports the loan amount.
- Cash for costs: transfer duty (if it applies), transfer and bond registration attorney fees and the bank’s initiation fee, unless the lender finances them.
There is no single age limit for a home loan in South Africa. The legal minimum is 18. At the other end, the lender looks at whether you can keep paying for the whole term, so older applicants may be offered a shorter term instead of the usual 20 years. There is also no universal minimum home loan amount. Each product sets its own. FNB, for example, needs a bond of at least R200 000 on its loan against a property that has no bond yet.
Income and Affordability Requirements
How much you can borrow depends on your income, not on the house price. Under the National Credit Act, a credit provider has to assess whether you can afford the credit before granting it. So the bank checks your gross and net income, your living expenses and your existing debt against your bank statements rather than taking your word for it. Lending more than you can afford counts as reckless credit under the Act.
What this means in practice:
- Permanent employees usually qualify most easily. Probation, a recent job change or income that is mostly commission makes the assessment harder.
- Self-employed applicants are assessed on business financials and a longer run of bank statements, because the income has to be shown to be sustainable.
- A joint application combines both applicants’ incomes, but also both credit records and both sets of debt.
- Paying off store cards, personal loans and vehicle finance before you apply frees up affordability directly.
Some banks publish income floors for particular products, and they change. Check the eligibility criteria on the lender’s own product page, and use the lender’s affordability calculator for home loan amount eligibility before you start house hunting.
If your household earns between R3 501 and R22 000 a month and you are buying your first home, the government’s First Home Finance subsidy (previously FLISP) can help. The National Housing Finance Corporation (NHFC) runs it. To qualify you must be a South African citizen or permanent resident, have never owned a home, never have received a government housing benefit, and already have in-principle approval for a home loan from an NCR-registered lender.
Credit and Financial Requirements
The bank pulls your credit report and looks at your repayment history, judgments, defaults and how much of your available credit you use. Get your own report first. The National Credit Regulator confirms that you are entitled to one free credit report a year from each registered credit bureau, and you can dispute wrong information with the bureau before a bank sees it.
The property is the bank’s security. The bank has it valued and lends against that valuation, not the price you agreed. If the valuation comes in low, you pay the difference in cash or renegotiate.
A deposit is not a legal requirement, but it improves your chances and usually your rate. Some lenders finance more than the purchase price for first-time buyers. Nedbank advertises up to 109% to cover attorney registration fees and transfer costs, and Absa up to 110% on its first-time homebuyer loan. These offers depend on your profile and change often.
Budget for costs on top of the price:
- Transfer duty, paid to SARS. On SARS’s current table, properties bought by individuals for R1 210 000 or less pay none, and it rises on a sliding scale above that.
- Transfer attorney (conveyancer) fees for registering the property in your name.
- Bond registration attorney fees for registering the bond at the Deeds Office.
- The bank’s initiation fee, set out in each bank’s pricing guide.
Home loan insurance requirements: the bank requires the building to be insured against damage for as long as the bond is registered, and may require credit life cover so the loan is paid if you die or become disabled. You can use the bank’s policy or your own, as long as it gives equivalent cover.
Documents and Verification Required
Every bank asks for much the same core documents. Only the number of months varies.
- Your ID (and your spouse’s, if you are married in community of property)
- Your latest payslip. Variable or commission earners give more, for example Absa asks for six consecutive payslips
- Bank statements showing your salary deposits, usually three to six months. Absa asks for three months, and FNB for six if you do not bank with FNB
- Proof of residential address, such as a municipal account
- The signed offer to purchase
- A marriage certificate, if applicable
- If self-employed: signed financial statements (Absa asks for two years), bank statements for the account your income is paid into, and a statement of assets and liabilities
- If switching or already bonded: statements for your existing home loan
Some banks let you consent to them fetching statements electronically instead of uploading them. Capitec says no documents are needed to start its online application, but you may be asked for them later.
How to Apply and Improve Approval Readiness
How a home loan works, from application to registration:
- Get pre-approval. Use the bank’s online pre-approval or affordability tool so you shop in the right price range.
- Sign an offer to purchase. It is usually subject to your bond being approved by a set date.
- Apply. Apply online, on the bank’s app, through a branch or consultant, or through a bond originator who sends one application to several banks.
- Affordability and credit check. The bank checks your income, expenses and credit record.
- Property valuation. The bank confirms the property is enough security for the loan.
- Loan offer. If both checks pass, you get a written offer. Read the rate, term, fees and conditions before accepting.
- Home loan registration. Attorneys lodge the transfer and the bond at the Deeds Office. Once registered, the property is yours and repayments begin.
Where to apply for a home loan with the main lenders:
- Absa home loan application: online, with a conditional offer or a consultant’s call if approved
- FNB new home loan: online or through the nav» Home feature, where you can also track the application. FNB’s home loan terms and conditions and pricing are on its home loans pages
- Nedbank home loans: online, on the Money app or through the contact centre
- Standard Bank home loans: online, with a pre-qualification tool and a documents checklist
- Capitec home loan: online or at a branch. Capitec sends the application to SA Home Loans, which assesses and approves it
To improve your chances before applying, check and fix your credit report, keep your bank statements clean (no bounced debit orders or unexplained cash flow), reduce short-term debt, save towards a deposit and costs, and avoid changing jobs or taking new credit while the application is open.
Frequently Asked Questions
What do I need to apply for a home loan?
Your ID, your latest payslip or other proof of income, recent bank statements showing your salary, proof of address and the signed offer to purchase. Self-employed applicants also need financial statements. You must be 18 or older, have a clean enough credit record and pass the lender’s affordability assessment.
What documents are required for a home loan?
The core set is your ID, payslip, three to six months of bank statements, proof of address and the offer to purchase. You may also need a marriage certificate, statements for any existing home loan and, if self-employed, signed financial statements. Check the exact list on your bank’s application page, because the number of months differs.
Can a home loan include registration charges?
Sometimes. Some lenders finance above 100% of the price so that transfer and bond registration costs are covered. Nedbank advertises up to 109% for first-time buyers, and Capitec lets you finance bond registration costs when switching your bond. Whether you qualify depends on your affordability and credit profile. Otherwise you pay these costs in cash.
Do I need a deposit for a home loan?
Not always. Qualifying applicants can get 100% finance or more, but a deposit lowers the bank’s risk and usually gets you a better rate. First-time buyers earning R3 501 to R22 000 a month as a household can apply for First Home Finance and use it as a deposit.
Can I get a home loan while under debt review?
Generally not. A consumer under debt review cannot normally take on new credit, and FNB, for example, excludes clients with debt review orders from its loan on unbonded property. You would normally need a clearance certificate once the debt review process has ended before a bank will consider a new home loan.
What if the bank values the property below the price?
The bank lends against its own valuation, so you cover the shortfall in cash, renegotiate the price, or try another bank, whose valuation may differ.
Should I apply to more than one bank?
Yes. Banks price the same application differently. A small difference in rate adds up to a large amount over a 20-year term. A bond originator can submit one application to several banks at once.
This page is general information, not financial advice. Criteria, rates, fees and offers change, so confirm them with the bank or with SARS and the NHFC before you apply. See loan requirements and browse all finance and funding requirements.