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Home loan South Africa: How to finance your home in 2024

Home loans are easier to obtain thanks to a range of funding options, including government programmes aimed at people with a low income.

Home Loans in South Africa

Article summary

  • You can finance a home loan by getting someone (usually a family member) to guarantee your home loan for you.
  • If your income falls within a low bracket (R3 501 to R22 000, to be exact), you can apply for First Home Finance (formerly known as FLISP), a government subsidy aimed at low-earners.
  • A home loan comparison service can help you secure home loan approval and lower interest rates on your home loan.

Owning a home is not a distant dream. With a home loan, you can make this dream a reality.

Banks have been more willing to grant home loans in recent times due to increasing competition. This increases your chances of getting a home loan with favourable interest rates.

But how do you finance the home loan? It turns out you have a range of options. We provide an overview:

Options for financing home loans in South Africa

  1. Get a guarantor.
  2. Use a home loan comparison service.
  3. Apply for First Home Finance (formerly known as FLISP), a government programme aimed at low-income (R3 501 to R22 000) buyers.

Option A: Get a guarantor

  • If you’re unsure whether you can secure a home loan based on your own income, you can approach a family member to act as a guarantor.
  • Not all banks accept the offer of surety by another party, but for those who do, the person signing surety must qualify for the home loan in their own right and should have a direct interest in the property, like a child living on the premises.

Option B: Use a home loan comparison service

Simply put, a home loan comparison service helps you finance the home loan by getting you the best deal.

A home loan comparison service such as ooba Home Loans will:

  • Liaise between you and the banks
  • Submit your home loan application to multiple banks
  • Present you with the packages offered by all the banks, so you have a range of packages to choose from.

Some banks have different lending criteria than others, so some banks will offer better deals. Lower interest rates, a longer loan term etc

Some banks are also more likely to accept a home loan application even if your credit score isn’t as high as it could be.

So ultimately, a home loan comparison service gives you the best chance of securing a home loan, and of securing low interest rates on that home loan.

Option C: Government Programmes (First Home Finance)

If you fall within a low-income bracket (R3 501 to R22 000), you have a good chance of securing a home loan, thanks to First Home Finance (formerly known as FLISP); a government programme specifically aimed at low-income buyers.

How do I apply for First Home Finance?

Apply online with ooba Home Loans. We provide a form you can fill in within minutes.

We then submit it on your behalf and monitor the progress of your application, updating you as needed.

How do I qualify for First Home Finance?

  • Your income must range from R3 501 to R22 000 per month.
  • You must be a South African citizen with permanent residency in South Africa.
  • You must not have received a government housing subsidy before.
  • You must be married or cohabiting OR single with financial dependents.
  • You must be over 18 years old.
  • You must not have owned a fixed residential property before.

How much is the subsidy?

The subsidy ranges from R30 001 to R130 000, depending on your income. The lower your income, the higher the subsidy.

Improve your chances of getting a home loan: Apply to multiple banks

With ooba Home Loans, you can apply to multiple banks, which will:

  • Increases your chances of home loan approval.
  • Increase your chances of lower interest rates, as some banks might be willing to offer more favourable packages in order to secure your business.
  • Give yourself a chance of home loan approval even if your credit score is on the low side, as some banks may have less strict lending criteria.

So apply with ooba Home Loans and we’ll submit the paperwork on your behalf, streamlining the application process and acting as your liaison with the major banks.

Get a free home loan comparison.

Multiple quotes from the big banks to compare.


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Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M