Real Estate Investor Magazine South Africa November 2013 | Page 24

GETTING STARTED

BY MEYER DE WAAL

Live The Property Dream
Get a bond today

T

There are three aspects that a bank will consider
when they consider your home loan. These three
aspects are – your affordability, credit rating and
profile and then the security that you offer.

The impact of the downturn in the economy and
unsurpassed growth in unsecured lending all added
to the woes of a consumer to secure a home loan.

A bank will assess these three aspects to
determine the risks they will take to lend you the
money to buy your house. In terms of the National
Credit Act, a lender (bank) can be held responsible
for reckless lending if they grant you a loan that
you can argue later you should not have qualified
for. Just recently African Bank was penalised R50
million as they participated in reckless lending

he dream of the older generation was to
pay off a mortgage. The dream of today’s
generation is to get one.

Since the introduction of the National Credit
Act in 2007 it appeared that the banks closed the
tap on home loan approvals for a few years and
only recently does it appear that it may be easier to
qualify for a home loan.

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November 2013 SA Real Estate Investor

activities and, on top of it, they had to write off
many loans granted under such practices. It is
much more difficult to secure a home loan (with
the support of a property as security), compared
to raising and unsecured loan. In the second term
of 2012 only R1.5 billion was allocated to home
loans for those who earn less than R15 000.00 per
month, compared to R9 billion that was advanced
to unsecured debt in the same income category.

The first requirement: your
affordability test
The first thing you need to know before you
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