Buying a home of your own

Buying a house is more than just an investment… it is a place to call home and create memories that will last a lifetime.  However, buying property is a big decision and it can be hard to know where to start – especially if you are a first-time buyer!  Fortunately, your bank will guide you in the process and give you all the important information you need to help you to buy the home of your dreams!

Applying for a Home Loan
The first and most important step before you buy a home is to make sure you qualify for a loan.  To qualify for a home loan:

  • You have to be 18 years or older, or be an emancipated minor
  • You have to earn a single or joint gross monthly salary of R3 500 or more
  • You need to have a transaction account into which your salary is deposited
  • You will have to supply certain documents, such as proof of income, three months’ bank statements and a list of your assets and liabilities.

Important to remember
As a rule, your monthly home loan instalment should not be more than 30% [WG1] of your gross monthly salary.  You also need to remember that you will have other expenses on top of your home loan instalment every month – you will have to budget for things like insurance, rates and taxes, water and electricity.  

Take the next step…

Talk to your bank about the types of Home Loans they offer.  Find out upfront how much your monthly bond repayment will be, how much interest you will have to pay and what your options are.  Then you can take the next step to becoming a proud home owner!

Next article: The cost of buying a home