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How to qualify for a home loan in South Africa

Pre-qualifying for a bond clears the path to you confidently making an offer on your dream home. Here’s how it works in five easy steps.

Qualify for a home loan

Article summary

  • Pre-qualifying for a bond gives you the edge when it comes to buying your dream home.
  • Your pre-qualification amount is based on your monthly earnings and expenses, as well as any debts you may have, plus your credit score.
  • A pre-qualification certificate is valid for 90 days, but can be recalculated and revalidated after this period.
  • Your ooba home loans finance expert is here to help you pre-qualify for your bond so that you can enter the home-buying process with complete peace of mind.
  • Once you’ve applied for a home loan and accepted the bank’s quotation, the bond registration process will begin, and your dream of owning your own home on its way to becoming a reality.

Investing in a home is one of the most significant decisions you’ll make, and you’ll want to ensure you have the best chance possible of acquiring your dream home. One of the best ways to achieve that is by getting prequalified, so you can enter the house hunting process with a concrete idea of what you can realistically afford.

How to get pre-qualified for a home loan

Here’s how prequalification works in five easy steps:

Step 1: You’ll need to provide your ooba home loans consultant with the details of your monthly income and expenditure, including income tax and living expenses. You’ll also need to state any debts you may have.

Step 2: Your ooba home loans finance expert will calculate your pre-qualification amount in accordance with the guidelines of the National Credit Act, and check your credit score. You will then be issued a pre-qualification certificate, which you can give to an estate agent to prove you’re pre-approved and ready to shop for your dream home.

Step 3: Your pre-qualification is valid for 90 days. After this, your ooba home loans finance expert will contact you to check whether your expenses have changed during this period of time. If there has been a material change, the pre-qualification will be recalculated and revalidated. If there is no change to either income or expenditure, ooba home loans will reissue a revalidated certificate.

Step 4: Once the banks have assessed your home loan application and given it the thumbs up, they will issue a quotation. This will include an interest rate, the cost of the credit, and any special conditions that may apply. Your ooba home loans finance expert will take you through the entire process, explaining everything you need to know.

Step 5: When you agree on a quotation, ooba home loans will notify the relevant bank, which, in turn, will proceed to instruct the appointed attorney to begin the process to register your bond.

Alternatively, ooba home loans offers a free, online prequalification tool, along with a range of other tools that make the home buying process easier. Start with their home loan calculators; then use the ooba Bond Indicator, to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.

Get prequalified for a home loan today

DIY with our online prequalification tool, or speak to an expert.

Get Prequalified

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