Financing your property purchase

It is, of course, imperative that a potential property purchaser first ascertains what amount he or she can afford to spend on their home.  If it is necessary to obtain a loan from a financial institution, it is always a good idea not to spend more than 25-30% of monthly gross income on the repayment of the loan. It is also advisable to firstly provide for as large a deposit as possible so that the loan amount does not constitute more than 80% of the purchase price. Provision should be made for fluctuating interest rates as our country has a reputation of unstable interest rates in the short term.

REDZ etc has forged a strategic alliance with Betterbond, SA’s no 1 bond origination company that can assist you with your bond application at your preferred financial institution. Their mortgage calculator can be accessed by clicking here.

In order to facilitate the process have the following documents handy when applying for a mortgage loan:

  • a certified copy of your identity document
  • your marriage certificate or divorce decree
  • a copy of the sales agreement that has been signed by all the parties
  • proof of your gross monthly income
  • most recent personal financial statements
  • a Z573 Government Guarantee Form if you are employed by the government
  • a copy of your permanent residence certificate if you are not a SA citizen
  • a utility account as proof of address