Financial Assistance

Non Residents

There are certain restrictions on non-residents wishing to purchase property in South Africa. The non-resident may borrow up to a maximum of 100% of his/her borrowing base. The Borrowing base of a non-resident individual is the sum introduced into South Africa to fund the purchase of a property, i.e. 50% of the purchase price. E.g. - A non-resident wishes to purchase a property in South Africa for ZAR600,000.00. Provided ZAR300 000.00 is introduced into South Africa to effect the purchase he / she would be able to apply to the South African Reserve bank for permission to avail himself of a bond of ZAR300 000.00. In other words banks will lend up to 50% of the purchase price, subject to their normal terms and conditions, which would include a valuation of the property.

Technically, if a non-resident has consistently brought funds into the country over a number of years, he/she may borrow up to a maximum of 100% of the total funds invested in South Africa. Theoretically this could also be more than 50% of the purchase price of the property.

These non-resident loans are however subject to foreign exchange approval from the South African Reserve bank. Financial assistance is granted in the form of a loan secured by a mortgage bond to be registered in favour of the bank granting the loan. ooba can apply to all the major financial institutions in South Africa on your behalf, for a mortgage bond, thereby obtaining the most competitive package on your behalf. This is a free service and no fee is charged. The obtaining of financial assistance from a financial institution should be included in the agreement of Sale as a suspensive condition where the sale is subject to the receiving of financial assistance.

The Non-resident does not have to open a banking account in SA with a commercial bank, although some banks insist, as he/she can transfer funds directly from his overseas account into his Mortgage Account. If an account is to be opened, especially if an access facility is required for the capital paid off, then the non-resident is required to obtain an original letter of credibility from his bankers. This local account will often be funded from abroad or from rental income from the property purchased, subject to the bank holding the account being in possession of a copy of the rental agreement.

As Exchange control is a complex subject, Non Residents are advised to consult with our ooba Home Finance Experts on this issue.

Temporary residents / foreign nationals

Foreign Nationals (temporary residents) may apply for local financial assistance, including a mortgage bond for the purchase of residential property. Such a mortgage bond is not restricted and depending on the standing of the client can be 50% of the purchase price of the property. The granting of any borrowing facility is subject to the approval of the Lending Manager in the Branch of the bank where the foreign national holds his / her account. It is important to note that when a foreign national departs the Republic of South Africa, the criteria for Non-Resident purchasers will apply and the bond may have to be reduced to fall in line with the South African Reserve Bank's formula requirements. Please talk to one of our experienced ooba Home Finance Experts to facilitate you with your application for bond finance.

South African Residents working abroad

For South African residents, working abroad, an 80 - 90%  mortgage bond can be obtained. Most banks will consider granting up to an 80% loan but each application will be evaluated on individual merit. Some clients have been granted 100% finance but in exceptional circumstances. You must live abroad temporarily and plan to return to South Africa. Moreover, an application to emigrate must not have been made, nor should you have surrendered your permanent residency status in South Africa. Please speak to one of our experienced ooba Home Finance Expert to assist you in this regard.

Contract workers

Contract workers are regarded as South African residents for the purposes of obtaining finance in South Africa and can therefore borrow up to 100%, subject to normal income qualifying criteria.