Home loan for first time buyers
If you’re looking to buy your first home, SA Home Loans is here to help. It’s one of the biggest financial investments you’ll ever make, and we’re here to guide you all the way.
Are you ready?
Before you set your sights on buying the home of your dreams, it’s important to decide whether you’re ready for a large, long-term financial commitment. In other words, is your income stable and large enough to support a first-time bond?
If your job is secure and you earn a regular monthly salary, there is a good chance you can afford to buy a home. If you’re self-employed, your income may be unpredictable, making it more difficult to know for certain. Our experienced bond specialists will help you understand your financial standing and calculate what size of home loan you can qualify for.
There are many costs and fees that come with purchasing a new home. You will need to have money saved to place a deposit and to cover moving costs, homeowners’ insurance and rates. To make sure you can afford the purchase, it’s important to work out your current monthly expenses, then add the extra costs of buying your first home. Your bond repayments, together with taxes and property insurance should not exceed 25% to 30% of your gross income (before tax). As a responsible lender, SA Home Loans will not approve a loan that exceeds 30% of your joint gross monthly income. We also recommend paying off other debt such as personal loans or credit cards, before applying for a home buyer mortgage.
Important factors to consider
A good place to start is the type of home you’re looking for. While your first home may not be the mansion of your dreams, it should meet all your needs, now and for the next 5 to 10 years. A bachelor flat may be the perfect place for a newlywed couple, but not ideal for raising a family.
Next, consider your individual housing needs. Is it centrally located, or at least within manageable distance of work, grocery stores, doctors, schools and pharmacies? Most importantly, is the area safe and secure? Although you can get “more home” for your money in a less appealing neighbourhood, it may not be suitable for children to live and play in. The value of your property won’t increase as much as it will in more sought-after areas.
Once you’ve decided which area you’d like to live in and know what type of home you want, you’re ready to begin house-hunting. This can take some time, but if you find the home that’s right for you, it’s a good idea to snap it up and resist the urge to shop around for a bargain. When you find the property that’s priced right and perfect for you, buy it.
Useful tips
Use your mobile phone or a camera to take pictures when house-hunting.
They will help you remember the details of each home you see. This is especially useful when you’re viewing up to six homes in a single day.
Write down key points about each home you see as you’re exploring it.
In particular, record the size, special features, design and other factors which may influence your decision.
Take note of the area and its surroundings.
Is the house close to everything you need, or is it in a remote location? Would you be happy to live in that neighbourhood?
Once you’ve narrowed down your options, revisit the homes you like best.
This will help you narrow down your options.
Make use of our home loan calculators.
They save time and help keep your goals realistic.
Once you’ve found your ideal home, it’s time to close the deal and apply for a home loan.
Although your estate agent might offer their commission-based provider, we recommend shopping around and dealing directly with the seller. This is an important, long-term relationship.
Applying for a home loan
SA Home Loans offers new and first-time property buyers a range of products tailored to their specific needs.
Use our repayment calculator to find out whether you qualify for a bond right now. Once you know it’s achievable, getting approval is easy. Simply apply online, call our sales team on 0860 2 4 6 8 10 or ask for a call back.
Alternatively, contact your nearest SA Home Loans branch to begin the bond application process. All you’ll need is your South African identity document and proof of income. Once all the necessary documentation is submitted, we will be able to complete the approval process within 48 hours.
*Terms and conditions apply to all products. The availability of lending products is subject to our credit policy as amended from time to time.