Do I Need a Large Deposit to Get a Home Loan in South Africa?
For many South Africans, the idea of owning a home can feel out of reach, especially when you hear things like “you need a big deposit to qualify for a home loan.” But is that really true?
Let’s break it down and uncover the facts.
The Truth: You Don’t Always Need a Deposit
In South Africa, it is possible to get a 100% home loan—this means the bank can finance the full purchase price of your property without requiring a deposit.
However, whether or not you qualify for a zero-deposit home loan depends on a few key things:
- ✅ Your credit score
- ✅ Your income and expenses
- ✅ The price of the property
- ✅ The bank’s lending criteria
Most banks are more comfortable approving 100% home loans for first-time buyers or for homes priced under a certain threshold (often under R1.8 million).
When a Deposit Is Needed
If your financial profile is considered risky, perhaps due to a low credit score or high monthly debt, then the bank might ask for a deposit to lower their risk.
A deposit is usually 10% of the purchase price, but the more you can put down, the better your chances of approval and securing a lower interest rate.
So What’s the Best Option for You?
Here’s the good news: you don’t have to figure this all out on your own.
A bond originator like us at Secubond can help you:
- Apply to multiple banks at once
- Compare interest rates for free
- Find out if you qualify for a zero-deposit home loan
We do all the paperwork and negotiations on your behalf—and it doesn’t cost you a cent!
The Bottom Line
You don’t always need a big deposit to buy a home in South Africa. Many first-time buyers have successfully purchased property with no deposit at all. The key is to have a good credit profile, manageable expenses, and the right team guiding you through the process.
Do you qualify for a 100% home loan?
Send us a message today and let’s help you take the first step toward owning your own home!