The main reason property investors hesitate to make a purchase isn’t always centred on the property market, but rather the uncertainty about whether you will qualify for a bond or not. If you are a beginner investor, a seasoned investor planning your next property move, or have been declined before, you need to know what lenders look at. Knowing how to prepare for home loan qualification in South Africa is essential.
Table of Contents
- What do banks assess when they determine if I qualify for a bond?
- What does the term “affordability” mean in 2026?
- How important is my credit score?
- Why are home loan applications sometimes declined?
- Does having a deposit saved make a difference?
- What should I prepare before applying for a home loan?
- Why should you use a bond originator instead of applying directly to a bank?
We’ll explore what you need to consider to know if you’ll qualify before you apply for a home loan.
1. What do banks assess when they determine if I qualify for a bond?
In the case of a home loan qualification in South Africa, lenders/banks assess your:
- Income stability– whether you have a stable monthly income from salaried employment or a business
- Credit score– they look into your credit history, and if you manage credit and repayments well
- Existing monthly debt– they ascertain if you have additional loans in place, credit cards, or finance repayments you are paying off
- Deposit amount– they look at whether you have deposit savings you can put towards the bond
- Employment history– they will look at how long you have been in your current role of employment or business (Source)
Major banks usually use these criteria to determine whether you will get a home loan qualification in South Africa and the loan financing amount you qualify for. (Source)
2. What does the term “affordability” mean in 2026?
Affordability is not a quick rule; it’s a detailed calculation undertaken in accordance with the National Credit Act. Banks and lenders need to know you can repay your home loan comfortably without becoming overextended in terms of debt.
As a general baseline:
Your monthly home loan repayment should not exceed about 30%–35% of your gross monthly income. (Source)
IGrow Home Loans offers our investors a handy bond affordability calculator. This helps you estimate which property bracket you can afford based on your income, expense profile, deposit (if you have one saved), and interest rate.
3. How important is my credit score?
Your credit score for a home loan is a very important check for lenders.
Most banks take the following into account regarding your credit score:
- ~610+ – Basic consideration for a home loan
- ~660+ – Good credit profile, offering better approval chances
- ~700+ – Considered a strong profile, and better interest rates will be offered
This credit score range helps banks determine your reliability in repaying your credit in the past. This will influence your home loan approval chances and the interest rates that you are offered. (Source)
“An individual’s credit score plays a major role in determining whether they will be approved for a bond or home loan… the higher the score, the better the chances of approval, as banks assess how reliably an applicant has honoured past financial commitments over time.” (Source)
View our blog post that explains more about credit scores and how to stay out of debt.
4. Why are home loan applications sometimes declined?
Common reasons why bonds are declined include the following:
- You have high existing debt in relation to your income
- Poor to low credit scores
- Your deposit isn’t substantial enough
- You have an unstable employment history
- Your documentation is incomplete
To note: Banks will check the amount you owe each month in relation to how much you earn. If you have a large debt load, this will reduce the chances of whether you qualify for a bond or not.
IGrow Home Loans get very high approval rates for clients by checking they have all the correct documentation and by applying to multiple banks on your behalf to negotiate the best deal (and so you only have to complete the document-gathering process once)
5. Does having a deposit saved make a difference?
Yes, however, banks do still offer 100% bond deals, and IGrow Home Loans’ bond origination team has secured thousands of 100% bank financed home loans.
You can consider having a deposit (10%–20% of the purchase price) that:
- Will improve your home loan approval chances
- Will reduce the risk banks face, making them more amenable at times
- Can result in better interest rates
A larger deposit can improve your affordability profile if you aren’t aiming for a 100% bank financed home loan.
6. What should I prepare before applying for a home loan?
Here’s a helpful pre-application checklist:
- Get a copy of your credit report through a free app such as ClearScore and correct any errors on it
- Use IGrow Home Loans’ bond affordability calculator to calculate what type of house you can afford in terms of repayment costs
- Pay off high-interest and unnecessary debt
- Save a meaningful deposit if you plan to take out a home loan that is not 100% covered by the bank
- Have a record of recent payslips, tax documentation, and bank statements ready for the bond originators you plan to work with IGrow Home Loans can help you with a comprehensive list
- Consider getting a home loan pre-approval so you know what your buying power is before you start. IGrow Home Loans will issue you a pre-qualification certificate after checking your financial credentials.
Preparing ahead helps you approach the lender with confidence. It also improves your chance of qualifying for a bond when you’re ready to purchase a property.
7. Why should you use a bond originator instead of applying directly to a bank?
Partnering with a bond originator, like IGrow Home Loans, will mean your application can be sent to multiple banks at once. It is also completely free to you!
This will:
- Improve your bond approval chances
- Create competition for lower interest rates, which is in your favour
- Match you with the ideal lender for your specific credentials
IGrow Home Loans’ bond originators understand how lenders assess candidates’ applications. Our team will position your financial profile with care to multiple banks, rather than you just submitting your application to a single bank on your own. This helps them negotiate you better interest rates and terms, which can have a huge impact on the cost of the bond over time.
Final Thoughts
If you are not sure where you stand in terms of affordability, or you want a clear plan in place before you apply,contact IGrow Home Loans’ bond origination team today.
We will bring you closer to confidently qualifying for a bond.
