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South Africa Mortgages
Q. How much mortgage can I have to buy a
residential property in South Africa ?
Please be aware that there are no non-status/self-certification mortgage
facilities available in South Africa (although renting out your property is
permitted), all loans need to be supported by a minimum requirement of proof
of income, i.e. if employed - copies of your latest pay slip (please note
that if you receive regular overtime/commission then the lender will require
copies of your last 3 months pay slips) together with copies of your last 3
month’s Personal Bank Statements will be required or alternatively if you
are self-employed - copies of your latest Signed Accounts & copies of both
your last 3 month's Business and last 3 month’s Personal Bank Statements
will be required on application together with management accounts from your
year-end up to date.
Unfortunately in South Africa the Lenders will not usually take into
consideration any proposed Rental Income from the property for mortgage
purposes/repayments.
Your loan is based on your joint net “take home” pay and is calculated on an
affordability basis. All your existing liabilities including any
mortgage/rent payments, personal and bank loans and any maintenance (ie:
Divorce) payments together with your proposed South African mortgage
payments must not exceed 30% of net monthly income.
South Africa Mortgage Example:
Net joint monthly income £ 2,500 times 30% of that figure is £ 750 minus
existing monthly mortgage payment £ 300 – No other liabilities. This leaves
a balance of £450 for a proposed South African Mortgage payment.
South Africa Mortgage details:
·
Maximum loan to value 90% for
expatriates SA
·
Maximum loan to value 80% for
other nationals
·
Maximum South African
mortgage term 20 years
·
Rand 500,000 minimum mortgage
amount
·
Rand only mortgages available
·
Repayment mortgages only in
South Africa
·
Rates from approximately
9.00% variable
details are subject to change, so you must check with your
broker on the link above before committing |
