- A score of 600+ usually gives you a fair chance of home approval.
- The bank’s lending policy plays a role; some banks may be willing to approve an even lower credit score.
- Your best bet is to apply to multiple banks, which you can do with the services of a home loan comparison service such as ooba Home Loans.
Your credit score plays the biggest role in whether or not you get approved for a home loan. It’s a three-digit number, based on your financial history, that tells the bank how much of a risk you are.
The higher your credit score, the better. But if you’re unsure about your financial history, you may be worried that your credit score is not going to be high enough.
The minimum credit score for a home loan in South Africa
A score of 600+ usually gives you a fair chance of home loan approval.
But bear in mind that the bank’s lending criteria plays a role in this. Some banks have less strict lending policies, and they may be willing to grant home loans to customers with a lower credit score.
Improve your chances by applying to multiple banks
How do you know which banks are likely to accept a lower credit score? Well, your best bet is to apply to multiple banks at the same time. You can do this by employing the services of a home loan comparison service.
ooba Home Loans is South Africa’s largest home loan comparison service. We have a good relationship with all the big banks in South Africa, and we specialise in helping people submit their home loan applications to multiple lenders.
Find out your credit score
You can use ooba Home Loans’ Bond Indicator to access your credit score. This is a 100% secure, online tool that is available free of charge and without any obligations.
Knowing your credit score helps you get an idea of how likely you are to be approved for a home loan. If you find out your credit score is low, you can start taking measures to improve your credit score before applying. For example:
- Paying your accounts in full and on time.
- Only dip into available credit when you really need to and reduce your credit limits where possible.
- Get your credit card debt down.
- Close accounts when you’ve paid the balance owing.
Giving yourself the best chance of home loan approval
As mentioned, if you’re worried about your credit score, try to apply to multiple banks with ooba Home Loans, and give yourself the best chance of approval. If you’ve already tried applying and been rejected because of your credit score, note that ooba Home Loans is successful in securing home loan financing for two in every four applications that are initially turned down by a bank.
Even if you’re confident in your credit score, applying to multiple banks will give you the best chance of getting a favourable interest rate. ooba Home Loans will allow you to compare packages on offer by the banks and secure the one with the best rates.
We also offer a range of tools that make the home buying process easier. Start with our Bond Calculator, then use the ooba Home Loans Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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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.
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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.