Buying investment property is rewarding, but it can come with certain complexities you need to understand. At IGrow, we aim to demystify your property investment journey and make the home loans process as easy to navigate as possible.
In this post, we provide a step-by-step guide with practical, actionable steps to simplify your home loan application process:
- Understand your financial situation
- Work out what a home loan will cost you
- Know the current lending rates
- Build up a healthy credit score
- Prepare for pre-applications
- Choose the best financing option
- Submit your home loan application
- Wait for home loan approval and registration
1. Understand your financial situation
Before you apply for a home loan, assess your financial situation:
- What is your monthly income?
- What are your monthly expenses?
- What disposable income do you have to invest?
- Can you cut costs or increase your income somehow? E.g. eat out less to cut expenses, or take on a side hustle, or ask for a raise, to increase your income?
Income – expenses = disposable income
2. Work out what a home loan will cost you.
Use IGrow’s Home loan calculator to calculate home loan repayment fees. Our calculator breaks down your monthly expenses related to your home loans and general home purchase fees. (Note, many bond and transfer fees are waived by IGrow Wealth Investments on investment properties, saving you thousands!)
3. Know the current lending rates
Most home loans are based on the prime lending rate. From July 2025, the prime lending rate has been cut to 10.50%. This is after several cuts from the prime lending rate in 2024 and early 2025. It was 11.75% last year and is now the lowest it has been in years. This means that now is an optimal time to explore your rental investment property purchase options, because home loans’ interest is usually front-loaded so you pay more of it early on in your investment. Make sure you enter the updated home loan interest rate in South Africa on IGrow’s Home loan calculator to plan your budget. (Source)
4. Build up a healthy credit score
Your credit score and credit history significantly impact your eligibility and home loan interest rate. Banks and lenders look at your credit score when determining if you qualify for a home loan, and when deciding how much inerest to charge you. If you are seen as high risk (becuase you have a bad credit score) they will either turn down your loan application, or charge you a higher interest rate.
Ensure you pay your bills on time, try to consolidate and pay off outstanding debt, or remain debt-free. It’s also wise to check your credit report before applying for a home loan. View our recent blog that explains more about credit scores and keeping them at a healthy rate: How to Improve Your Credit Score in South Africa.
5. Prepare for pre‑applications
Getting home loan pre-approval is handy to see if your home loan application process will go smoothly. IGrow Home Loans, which falls under the IGrow Group umbrella, offers a handy pre-approval form on our website. We can then provide you with a pre-qualification certificate.
What you will need to prepare for your home loan application:
- Certified copies of your ID
- Proof of income/Salary slip
- Bank statements (Going back 3 months, if you are employed, or 6 months, if you are self-employed)
- A credit report (IGrow Home Loans will source this with your permission)
- Your proof of address
6. Choose the best financing option
IGrow Home Loans offers guidance on a range of financing options:
- 100% bank financing vs putting down a deposit: We apply for a 100% bank loan on your behalf, where no deposit is required (when applicable)
- Joint home loan options: a combined income increases borrowing power and also means shared repayments.
- Home loans with surety provided by a parent or partner
- Decide between a 20 or a 30 year loan term: You pay a lot less per month on a 30 year term, but you will pay a lot more over the full term of your loan. Which is the right option for you will depend on your financial situation.
Joint home loan applications with a spouse or close relative mean greater affordability and less risk. This is a significant win for combined‑household borrowers or co-applicants with lower incomes wanting to start out owning property.
“In deciding whether to approve a joint home loan, the banks will assess both (or all) parties’ affordability and credit scores prior to making the final decision. And it’s important to note that while a joint home loan is split between co-homeowners, by signing into a joint home loan, you agree to become responsible for the entire bond should one party default.” (Source)
7. Submit your home loan application
IGrow’s bond origination team will help you get your documentation in order, and then they will go on to submit your application on your behalf to multiple banks at once. IGrow Home Loans has been in operation for almost two decades, so they have formed excellent relationships with major South African banks and financial service providers over the years. Their rapport with the banks and expertise in this department greatly improve your chances of home loan approval. We are the number one partner of Mortgage Max in the Western Cape region, having secured R145million in bonds in June alone, and even more in July!
IGrow’s bond originators will provide you with home loan offer comparisons, and negotiate the best interest rates and loan terms for you. You’ll also receive guidance from the Home Loans team to understand the documents needed when applying for a joint home loan, or as a company or in a trust structure.
8. Wait for home loan approval and registration
Once your home loan has been approved, you need to sign the home loan agreement. Then IGrow Home Loans will guide you through the registration process. IGrow Wealth Investments often offers investment properties, where bond and transfer fees are included in the price, saving you thousands of rands. IGrow also sometimes offers Rental Assist and special discounts on IGrow Rentals’ Property and Tenant Management Services for rental properties.
Why does this approach work?
- There are handy tools: IGrow’s Home Loan Calculator helps you prepare for a variety of scenarios, including co-applying for joint home loan applications.
- You will be up‑to‑date on rates: With the prime lending rate now being 10.75%, it’s the perfect time to invest.
- Strategic joint home loans and co-applications: Joint income increases bank lending approval chances and lowers each co-applicant’s repayment amounts.
- IGrow’s Home Loans facilitates the application process: IGrow’s bond originators represent you across different banks, saving you time and stress, and usually securing you lower-than-average interest rates!
Top Tips
- Start the process by reviewing your credit score: aiming for a credit score of 670 and above will give you the best interest rate offers from lenders.
- Pre‑applications are worthwhile: work out your borrowing limit before property searching. IGrow Home Loans awards a pre-qualification certificate for your home loan.
- Keep up with prime lending rate and interest rate changes: if you are on top of these figures, you will know when the best time is to invest, and we believe it is now!
Conclusion
At IGrow, simplifying the home loan process for you is what we do best. From planning your application process with our Home loan calculator, to overseeing a seamless home loan application, we have you covered.
Our property management team will be ready to look after your rental property after purchase. IGrow offers a full-service offering tailored to South African buyers’ needs. We cater to both individuals and co‑applicants applying for home loans.
Are you ready to begin the home loan application process?
Contact IGrow Home Loans today for a free consultation, and let’s set your home loan application in motion.
We are looking for top Bond Consultants to join our team!
