Home Loans

Are you a first time buyer looking to find a way of increasing your chances in getting your home loan approved, at the best rate? Or are you a person who is looking to buy your next dream home, or extend an existing home, or even build a brand new home? At BondBuddy, we specialise in absolutely everything to do with home finance...which means that when you apply through us, we'll make sure that you get all the finance you need in the fastest possible time.

We work with all major banks and are able to offer many different types of products. These products all come with various payment terms and rates to suit your unique requirements.

Options usually offered are Variable Rate Loans, or Fixed Rate Loans. On a Variable Rate Loan the rate charged is based upon the Prime Interest Rate. With this option your rate and monthly repayment could increase or decrease from time to time. On a Fixed Rate Loan, you would agree on set rate and repayment term with the bank. During this period your rate and monthly repayment would not change even if the Prime Interest Rate were to change.

Types of Home Loans we offer

  • Ordinary loans
  • Further loan on an existing bond
  • Building loans
  • Further loan on existing bond

This is a normal home loan that is used to purchase an immovable property or vacant land.

This is a loan that is taken out on an existing bond. The owner of an existing property would apply to the bank for an advance of funds/loan against an existing bond. The bank would grant a further advance subject to there being sufficient equity in the property, as well as income/affordability. Funds could then be used at the persons own discretion (funds are generally used for home improvements etc.)

This is a loan that is used to erect a building on a vacant stand. A bank would grant the loan subject to a mortgage bond being taken out in its favour. The funds would only be advanced after the bond has been registered, and in stages as the building work progresses.

This is a loan that is taken out on an existing bonded property for the purposes of additional building work, alterations or improvements. The bank will expect to see the property value increase as a result of the additional work carried out, and will only grant a further advance if additional equity is formed. If there is insufficient equity in the property, a new bond will have to be registered.

Types of people we can help

Whether you are looking to buy your first home, move to a new home, build a new home, or secure additional funds on your existing bond, we can help.

  • First time buyers
  • Established buyers
  • Non SA citizens
  • Full-time employees
  • Self-employed
  • Trust
  • Business (all forms of business formations)
  • Affordable housing

Types of properties we can arrange loans for

  • Residential property
  • Cluster houses
  • Townhouses
  • Flats
  • Duet houses
  • Smallholdings

The home purchasing process

Buying a home will require you to go through various processes before you take ownership. The processes involved would typically proceed as follows:

1Submit an application

If you require a pre-approval before you start searching for a house, or if you have already found a house, you would need to submit an application form on our site to start the process. (If you have already found and chosen a house, you would need to submit an offer to the seller, and if accepted, you would sign an Offer to Purchase to secure it. (Contact us before you sign your Offer-to-Purchase). This will allow us to provide you with discounted rates on your bond transfer costs)

2Consultation

We'll assign you with your own expert bond originator who will discuss your application with you and gather all the necessary information that the bank may require.

3Provide supporting documents

We'll assess your application and will work closely with you to gather all relevant documents to submit to the bank.

4Submit application to bank

Once we've gathered all your documents, we'll immediately submit them to the bank for urgent processing.

5Lending decision (letter of acceptance - LOA)

The bank will review your application and supporting documents to assess your eligibility for the loan. A full check on your credit profile will be carried out and if all satisfactory, your loan will be approved. The bank will issue a Letter of Acceptance (LOA) which will include a quotation of the finance that they will offer. It will provide the interest rate, repayment period, and the monthly repayment figure, as well as other important information for your review and acceptance.

6Conveyancing

After you have signed the Letter of Acceptance, an Attorney will be appointed by the bank to handle the bond registration process. You will be required to sign the registration documents.

7Lodgement of documents

The bond registration Attorney will lodge the bond documents at the Deeds Office. The Attorney handling the transfer of the property will also process the transfer accordingly. There may also be a cancellation Attorney involved at this stage to handle previous property documents. During this stage, many other parts of paperwork will also need to be processed (official statements, guarantees, local municipality etc.). If relevant, you will be required to pay a deposit to the transferring Attorney who will hold these funds in a Trust until the property is legally transferred to you. Interest will be earned on these funds and will be payable to you.
Transfer duties (compulsory government tax) will need to be paid to the transfer Attorney, who will then pay the Receiver of Revenue. This is generally the highest cost in the purchasing process, however, significant savings can be made if you choose to use our Attorney.

8Registration of property

Registration of the property will be finalised between 7 to 10 working days following the date of lodgement. The bank will charge you a Bond Registration Fee which is calculated based upon the amount of your home loan (it also includes Stamp Duty). This amount is paid to the bank's Attorney who will in turn use these funds to register the property as well as pay the Receiver of Revenue.

Points to remember

  • Monthly Admin and Bond Initiation Fees
    • A once-off fee is paid to the bank for setting up your home loan. It is common for a bank to request that a professional assessment and valuation of the property is done before a loan is granted. The bank will also charge a low monthly fee to cover the administration costs of your home loan account.
  • Occupational rent
    • If you choose to move into your new property before you have taken official legal ownership, then you may arrange to pay the current owner a monthly rental amount to live in the property until the transfer has been completed. This agreement and rental amount will be noted in the Offer-to-Purchase.
  • Interim interest
    • The bank will charge you interest on the amount of your home loan from the day you receive your loan advance through to the date of your first repayment.

Documents Required

Useful Information

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