Several South African banks confirm that there is no minimum income to qualify for a bond. Banks use your income to determine the size of the bond that you do qualify for. 

How does your credit rating affect your home loan application:

Every South African citizen has a credit record whether good or bad, all your credit transactions are documented and you are given a rating. Your bank will need your permission to access these records and since you cannot get a home loan without them scouring your credit worthiness, you may as well give it to them and get it over and done with. However you can also obtain these details yourself before submitting them to your bank so that you know upfront what your chances are.

You can go to www.transunion.co.za for more information or to obtain your credit report. Your credit history can be a good thing as banks also decide which interest rate to give you based on your credit score and if it is good they will consider you a positive risk and you are more likely to get better offers from different institutions.

As a first timer you are afforded privileges, the basic criteria to qualify is the following:

  • It needs to be the first time you're applying for a home loan
  • You must be at least 18 years or older
  • You must be permanently employed for longer than 6 months/self-employed for 2 years
Some of the institutions will offer first timers a bond above 100% to cover some of the Transfer and legal costs. Most banks now offer a 30 year bond repayment period, making the monthly costs more affordable, created specifically for first-time buyers.

However sometimes banks will make you take out a bond protection insurance policy (covering your outstanding bond if you die), which will act as security for the loan. Make sure that you state clearly on your application that you are a first time buyer.


Find someone knowledgeable to assist you through this process, it could be your Estate Agent or your Bond Originator or both. The more professional advice you can get the better. Always ensure that the Estate Agent of your choice is fully qualified and has an up to date EEAB certificate, Rogue Estate Agents can hurt you more than help you.