Real Estate Investor Magazine South Africa June 2018 | Page 34

FINANCING
Alternative Finance
Models
Financing your home if the bank
turns you down
Y
RENIER KRIEK
Non-practicing attorney and
the CEO of Sentinel Homes.
32
ou’ve found your dream home or
residential investment proper-
ty, had your offer accepted, and
now you need finance. Here are some
ideas on how to secure the financing
you need to make that purchase pos-
sible.
Your first port of call might be your
bank or, better yet, a bond originator
who will submit your application to
several banks and shop around at no
cost to you, to get a home loan at the
best possible rate. If your credit rating
is good and you can afford the month-
JUNE/JULY 2018 SA Real Estate Investor Magazine
ly bond repayment, your application
should be successful, right?
Unfortunately, this is not always the
case. Only a fraction of aspirant home
buyers qualify for bank home loans and
banks are offering lower bonds to many
who qualify, so there is no guarantee
you will get the financing you need.
Banks consider many factors when
they assess home loan applicants, in-
cluding stability of income, source of
income and age. So if you are self-em-
ployed, freelance, work on contract or
earn foreign income, or if you are a for-