FAQ for home buyers: home loan questions answered
Looking for answers about the home loan process? Our FAQ for home buyers covers the most common questions about pre-qualification, home loan applications, affordability, required documents, bond costs and more. Whether you’re buying your first home or your next property, this guide helps home loan applicants understand what to expect before applying for a home loan.
Getting started
Do I pay to use a bond originator?
No. Using a bond originator is a free service. The bank that approves and registers your home loan pays the bond originator, so there is no cost to you.
Why should I get pre-qualified before viewing homes?
Getting pre-qualified speeds up the home buying process and gives you a clearer understanding of what you can afford. It helps you focus on properties within your budget and demonstrates to sellers that you’re a serious buyer.
Does a home loan pre-qualification affect my credit score?
No. A credit check is 100% free and it will not affect your credit score
What does a pre-qualification certificate cost?
Nothing! Zero cost to you
What home loan amount can I qualify for?
A home loan pre-qualification helps you understand your affordability and the type of home loan you may qualify for. It can strengthen your application by ensuring your financial information is prepared before it is submitted to participating banks
Applying for a home loan
What do banks look at when assessing my application?
When you apply for a bond, the bank will take a close look at your income, your ongoing monthly commitments, and your credit profile to assess affordability. Their goal is to determine whether you can comfortably meet the required repayments. Having a deposit in place can further support your application, as it demonstrates financial discipline and reduces the lender’s risk.
What documents do I need?
As a salaried applicant, you will need to submit the following proof of income:
- The latest 3 months salary slips
- The latest 3 months bank statements
- Copy of your SA ID
- Your latest 6 months salary slips and 6 month’s bank statements, if you receive any of the following: (commission; overtime; vehicle allowance; housing allowance and shift allowance)
What documents are required for a joint application?
For a joint application, you will need to submit the following proof of income:
- The latest 3 months salary slips
- The latest 3 months bank statements
- Copy of your SA ID
- Your latest 6 months salary slips and 6 months bank statements, if you receive any of the following: (commission; overtime; vehicle allowance; housing allowance and shift allowance)
Can I qualify if I'm self-employed?
To apply for a bond as a self-employed person or sole proprietor, you’ll need to complete an application form and we’ll guide you through every step. Your application must include your signed offer to purchase, a consent form, and details of your income, expenses, assets, and liabilities.
You’ll also need to provide the following documents:
- A copy of your ID
- Personal bank statements (3 months for fixed income; 6 months for variable income or sole proprietors)
- Six months of business bank statements
- An auditor’s letter confirming your income (not required for sole proprietors)
- A letter from your auditor confirming your shareholding if you operate as a (Pty) Ltd
- Financial statements for the past two years (plus recent management accounts if they are older than six months)
- Payslips, depending on your shareholding in a (Pty) Ltd
- Your latest IT34 tax assessment
Each bank may have slightly different requirements depending on how your business is structured. We’re here to assist you with the paperwork and help present a strong application to the bank.
Home loan costs
What upfront charges come with a home loan application?
Upfront costs are the initial fees you pay when getting a home loan. These include the bank’s initiation fee, transfer costs, transfer duty, deeds office charges, postage, and any other small fees required for the application.
Which fees are part of my monthly bond repayment?
Each monthly repayment includes a portion of the loan amount and the interest charged by the bank
What are transfer duties?
Transfer duty is a tax charged by the government when you buy a property. The amount you pay depends on the value of the home. Higher priced properties come with higher transfer duty fees.
What are transfer costs?
The transfer cost is a single payment made to the conveyancing attorney. It covers the legal work required to record you as the new owner at the Deeds Office.
Managing your home loan
Can I settle my bond sooner?
Yes. By paying extra into your bond, you can shorten the loan term and reduce the total interest you pay.
About FlexiBonds
Is FlexiBonds a financial institution?
No, we are not a financial institution. We are not a lender and we do not grant loans ourselves. Instead, we provide a no cost bond origination service.
What does this mean? We submit your home loan application to multiple banks on your behalf, gather their offers and help you choose the most competitive home loan option. We support you every step of the way