Will my bank give me the best deal on my home loan?

It is understandable that you want your bank to assist you with your home loan but:

  • Your bank can only provide you with ONE quote
  • You won’t know for sure that you’ve got the best possible rate and terms, if you have not got multiple quotes to compare

Why do I need multiple quotes to compare?

  • Banks are willing to compete for your business, which means that they are prepared to negotiate on interest rate and terms in order to secure you as a customer
  • You can benefit from shopping around for the best terms, much like you would for insurance

Why do I need to know my credit 

  • You need a credit score of 600+ in order to qualify for a home loan with most of South Africa’s banks
  • The first thing a bank will do, when receiving your home loan application, is check your credit score

Why do I need to prequalify?

  • You will receive a full credit report including your credit score, which will tell you if there are any issues that might compromise your home loan application
  • If you want an approved home loan, then you need to be shopping within your correct price range. The first thing a bank will do when processing your home loan is assess your affordability

Do I need a deposit?

  • There are a number of banks that are willing to finance a 100% home loan, where no deposit is required
  • There are also some banks willing to finance up to 109% of the home loan required, to include your attorney’s costs if you meet certain qualifying criteria

What other hidden costs do I need to be aware of?


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