Real Estate Investor Magazine South Africa Dec/January 2020 | Page 31

A credit score check is required for all applicants. R2B clients
are advised to do their own credit check via the free online
platform: https://r2b.mybondfitness.co.za
Applicants are advised to disclose their history to their
R2B advisor and will be advised on how to proceed with the
application. Rent2buy finance, however, is not a solution to skip
a bad credit history in order to acquire home ownership. R2B’s
main objective is to “provide sustainable home ownership
solutions”. R2B finance consultants will also give advice or
assistance towards affordability improvement, along with full
Budget Fitness support.
Rent2Buy Finance is by no means a quick solution to skip
debt, but more of an institution to provide guidance on how
to achieve a sustainable solution to purchasers who were
declined by their bank for a “minor” reason. If they are of the
opinion it will create too much pressure on repayment of a R2B
purchase price, he/she will be advised on how to reduce debt
or free up disposable cash to qualify for the transaction.
Net income requirement
One needs to earn at least R16 000 NETT to qualify for a
potential home loan for the entry level of R400 000 R2B Finance
purchase price.
About the process
R2B will tell you all you need to know about the finance
process. They’ll check if the free credit score was done and
discuss the outcome. You’ll need to complete the Rent2Buy
Finance Rental application form. You should retrieve a list of
supporting documents including your I.D, proof of income,
consent for TPN credit profile and bank statements to supply
R2B. A fee of R750 (individual) and R850 for a couple is payable.
Part 1: Your Rental Income Certificate. Rent2Buy and
Rentmaster will analyse the TPN credit profile, income,
expenses and affordability of the applicant and issue R2B
with a monthly rental amount that Rentmaster is prepared to
underwrite.
Part 2: The rental amount will be converted into a purchase
price amount and purchaser will be provided with a formal
R2B Finance quotation. It will include the likes of the deposit
required, interest rate, monthly rental, R2B option fee and end
purchase price at the end of the 2-year rental term.
Purchase price certificate
The buyer will be supplied with an official R2B Finance Purchase
Price Certificate and will be as good as a cash buyer. (As long as
he/she buys a property in the approved areas and approved
price range). You will be assisted throughout the process.
Locate your property
Your R2B Finance Affordability Certificate is valid for two
months from date of issue, and you can now find your property.
Bear in mind it should be within your Finance Affordability
IMPORTANT DOCUMENTS
For Employed Individuals and
South African Citizens

Completed application form
Copy of ID
Latest 3 month’s salary slips
Latest 3 month’s bank statements
Latest IRP5 form
Proof of payment of R750 individual & Couple - R850
For the Self-Employed Individual

Completed application form
Copy of ID
Letter from Accountant or Bookkeeper confirming
Gross and Nett Income
Company financial information
Independently
verified/audited
financial
statements:
Month’s bank Statement OR
Management Accounts:
Month’s Bank statements OR
If no Financial Statements of Management reports
are available:
1 Year Bank statements
Latest 3 Months Personal Bank Statements
Latest IRP5 form
Proof of payment of R 750 / R850
Certificate prices range and you have the deposit ready to
put down at the same time they’re preparing the purchase
agreement to secure the property for you. The property must
be in Cape Town Metro, Bloemfontein or Gauteng.
Rent2Buy will buy the property
The R2B Finance company will buy the property on your behalf
(R2B client) and freeze the purchase price for the following 24
months. Rent2Buy will enter into a separate agreement with
the buyer.
Protecting you as the future owner
The purchase agreement will be a cash purchase and subject
to valuation of the property. It will protect you as the future
owner of the property. They will request the approved building
plans as well as the current, satisfactory financials of the body
corporate if it is a sectional title property.
Get a “My Budget Fitness Trainer”
A personal ‘my budget fitness trainer’ will be provided to help
you get ready for home ownership during the 24-month R2B
term. Participation is compulsory for R2B clients.
22 Months In
The R2B client will be provided with the application for either
an instalment sale or a home loan. The application will be
supported by a 22-month payment history and credit profile
for an affordability track record.
SOURCES irent2buy, Rentmaster & My Bond Fitness
SA Real Estate Investor Magazine DECEMBER/JANUARY 2020
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