First time buyer home loans

Get your home loan today!Are you a first time home buyer? Are you looking for a loan? Do you want to know what you qualify for when buying your first home?

If you are a first time home buyer and you’ve always dreamed of the new house that you will own one day, you must have thousands of questions running through your mind. You probably don’t actually know where to begin! And I guarantee that those questions range from:

(Note for any information click on the FAQ HELP button on the right and a consultant will get back to you).

*IMPORTANT* – Before you start: Click here to order your credit report now

  • What are the best home loan deals for first time home buyers?
  • Should I go for a fixed rate or a variable rate?
  • How do I get my first mortgage or home loan?
  • Should I go to a first time buyer mortgage specialist or a bank when I’m buying my first home?
  • How much can I afford to borrow for my first mortgage, and how much will it all cost me?
  • Do I qualify for affordable housing?
  • Do I qualify for a subsidy via FLISP?

To the most important of the lot, CAN I AFFORD MY FIRST HOME?

Well, a good place to start is our first time affordability calculator section that will instantly tell you what your monthly repayments would be on any given home loan. Being a first time home buyer you’re left with plenty of options. The first being getting costs included and not all banks will give this to you, however, a  104% or even a 108% home loan or some costs covered by the bank mainly around 105% loan is sometimes possible.

Another option would be just a ordinary loan with a top loan for costs via a personal loan. Then there’s the option of a joint bond i.e. with a friend, girlfriend, partner or parent and last but not least a shared ownership loan. What this allows you to do is buy with an entire group of people thereby cutting down your monthly costs but obviously adding more partners.

The option I’m going to talk about here is a First Time Home Buyers Loan. A first time buyers loan is a 104% to 108% bond but more like 105%(depending on the bank). This means you’re getting 100% loan to value of the purchase price for the bond you requested from the banks PLUS roughly and additional percentage or about 5% to pay for your bond registration and transfer costs. This obviously means that your bond is going to cost you a little moreyour interest rate won’t be so great and the downside is that the 5% is going to take you an additional 3 to 5 years to pay off, but for those first time buyers who need the extra cash, the FIRST TIME LOAN is the IDEAL solution.

Requirements:

  1. MOST IMPORTANTLY – An absolutely clear credit record – so check yourself out with the credit bureaus 
  2. No bounced debit orders on your bank statements – watch for this and don’t get caught
  3. Three (3) months bank statements – preferably originals or if internet statements stamped at a branch 
  4. Copy of your latest salary slip
  5. Copy of your ID

Each bank has slightly different requirements for a home loan and these change regularly so ask your originator for the latest status

See banks and lenders for latest details.

 First Time – ABSA First Time Home Buyer:

  • Min first time bond amount of R120 000 with no maximum amount
  • Trusts, cc, companies – 100% with a stable employment for 2 years
  • You must be a South African citizen with a CLEAR CREDIT RECORD
  • A minimum single income of R6000 and joint of R10000

Bond Plus – FNB First Time Home Buyer

  • Min bond plus amount of R150 000 to a maximum of R2 mil
  • Trusts, cc, companies – 100% loan with stable employment of 2 years
  • You must be a SA citizen with a CLEAR CREDIT RECORD
  • A minimum single income of R9000 or a joint income of R11000
  • Variable interest rates offered

Jump Start – STD Bank First Time Home Buyer

  • Min bond amount of R100 000 with no maximum amount
  • Trusts, cc, companies – 100% no costs included. However they have been known to offer 108%
  • Must be an SA citizen, employment proof needed with an acceptable credit record
  • If 108% loan is asked, there might be an extra charge for “cost inclusive” risk
  • Exclusions include vacant land and commercial property loans
  • Variable rate or fixed rate

Alpha Bond – Nedbank First Time Home Buyer

  • Min bond amount of R100 000 to a max of R2 million
  • Trusts, cc, companies – 108% loan amount (including bond costs)
  • You must be a South African citizen with a CLEAR CREDIT RECORD
  • A minimum single income of R5000 commission earners, 12 months with the same employer and 6 months commission statements
  • Exclusions – 2nd Time buyers, temporary employment building and home improvements loans
  • Variable rate or 1, 2, 5 year fixed rate contract