How do I get a bond?
Once you have signed the Offer to Purchase, it is time to apply for a bond.
When buying property for the first time you will require a home loan. Find out what you need to know before you apply...
Whether you haven applied for pre-qualification at this stage or not, it is advisable that you shop around for a deal which suits you best.
You can either go to the Banks directly, or take up the services of a mortgage originator.
Mortgage Originators vs. The Bank
Generally this comes down to personal preference.
You can go to a Bank to cut out any ‘middleman’ and apply for a bond in a familiar setting with an institution that knows you and your Banking history. Alternatively, you can apply through a mortgage originator which will cover all the Banks on your behalf with one application.
• Proof of income
• Copy of your South African ID or passport
• Copy of signed Offer to Purchase
• Proof of current residential address
• Official salary slip or stamped bank statement (either option needs to show history for the last 3 months)
Remember, to qualify for a home loan you have to:
• Be over 21 years of age
• Have been employed permanently for a minimum of 6 months
• Have no judgments or defaults on your credit profile
• Earn above the minimum salary requirement as set out by your chosen Bank
Once your chosen Bank has received all the relevant documents, the approval process begins.
Submit your bond application. Your home loan consultant will assist you through every step of the bond application process. Your application is then submitted to multiple banks, including your own, on your behalf.
Bank offers.
We will come back to you with offers from the banks and you will be able to choose the one that best suits your needs.
Approval in principle.
After your application is assessed, most banks will provide you with an approval in principle, subject to the valuation of the property.
Property valuation.
The bank will assess the property to confirm the value in order to make their final decision on your bond application.
Home loan approval.
If your home loan is approved, you will receive a quotation stating the amount that has been approved, the interest rate you have agreed on, and the terms and conditions of your bond.
Formal grant and bond registration.
Once you have accepted and signed the quote, your home loan will be formally granted by the bank and the bond attorneys will be instructed to register your bond. The registration timeline is dependent on a number of factors.
Your attorney will keep in contact with you throughout the process.
Insurance.
As a homeowner, you should be comprehensively insured. Bond insurance guarantees that monthly home loan repayments will be covered in the event of death, disability, dread disease or loss of income. Bond insurance provides peace of mind, knowing that you and your family will always have a home.
What is bond insurance?
Bond insurance ensures that with death, dread disease or permanent disability, the outstanding loan amount is settled. If you experience loss of income or temporary disability, the bond installment is paid for a period of time
Is bond insurance compulsory?
This is compulsory with affordable housing or with certain FNB clients, based on the bond value. Otherwise, bond insurance is voluntary.
Why get bond insurance?
Bond insurance grants you peace of mind, knowing that you and your family will be covered.
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