As a first-time property investor, the idea of applying for a home loan can seem overwhelming. Don’t worry, at IGrow Wealth Investments, we believe home loan financing can be far simpler than you think! With the right team by your side and with the correct tools at your disposal, your investment journey is bound to be successful. IGrow Home Loans (one of the IGrow Group of Companies) is behind you every step of the way to navigate property financing and home loan application approval.
2025 is shaping up to be an excellent year in which to apply for a home loan! The 2025 Budget Speech by the national government allows South Africans to benefit from no transfer duty fees below a R1.21 million property purchase. With the repo rate cut in January to 11%, both these factors can truly boost your property purchasing power. This higher threshold of no transfer duties means first-time buyers of investment properties will have easier access to the market, making this year a prime time to start your property investment journey! View our blog post explaining in more depth the zero transfer duty fee threshold at R1.21 million: 2025 South African Budget Speech: How Does This Affect Property Investors?
The South African buyer’s market in property is booming!
“As of the last quarter of 2024, consumer confidence in South Africa’s property market had reached its highest point in ten years. This is according to Absa’s latest Homeowner Sentiment Index, a barometer of consumer confidence… Additionally, 77% of respondents said they were confident in buying rather than renting, up 4% from the previous quarter, driven by the belief that it is more beneficial to own a home than rent one.” (Source)
“These levels recorded are the highest in a decade with the dominance of first-time buyers in the market relative to other segments and an ongoing trend, the report said. This result bodes well for the outlook of the property market into 2025 and is indicative of the resilience of South African consumers who are optimistic even as they emerge from the burden of a protracted cost-of-living crisis,” – Nondumiso Ncapai, Managing Executive at Absa Home Loans. (Source)
It can be seen that first-time buyers are seizing the opportunity to invest in the South African property market. We encourage you to engage with an IGrow Home Loans specialist so you, too, can start your property investment journey! We’ll look into how our bond originators set the ball rolling on home loan financing below.
Are you looking to apply for home loan financing?
When you apply for home loan financing, being prepared is essential. It is useful to know what banks look for, so you can strengthen your home loan application.
Make sure you gather the following documents:
- South African ID
- Proof of income (3 months’ worth of Salary Slips)
- Get your credit score ready (a “healthy credit score is 640 +).
- Be aware of any debt you owe. Gather records of this.
Check your credit score 6 months ahead of the time at which you wish to apply for a home loan. If your credit score isn’t at the “healthy” level, work on it to boost it over time. View our recent blog post that explains easily how you can improve your credit score.
Try and reduce existing debt. If your debt repayments are very high, your chance of home loan approval will decrease.
Exploring the 100 Percent Home Loan financing options
A lot of first-time buyers haven’t got a deposit saved up, which is when 100 percent home loan financing can save the day! A 100 percent home loan means you can obtain a home loan covering the entire value of the property you wish to purchase, without the need of an upfront deposit.
According to Madelein Kottnitz, Director of Grow Home Loans, “Financial lenders assess certain factors before granting a 100% home loan. This includes your employment history and the stability of your monthly income. If your credit score is good and the other factors reflect well, these act in your favour for home loan approval.”
IGrow’s revolutionised bond repayment calculator will help you calculate your monthly bond repayment fees and your affordability level before you even apply for a loan. We recommend this as a handy tool for somebody applying for home loan financing.
Our calculator is quick, accurate, and easy to navigate. In a few seconds, you can figure out what kind of home loan you will qualify for.
Alternative home loan financing options
Are you battling to qualify for a traditional home loan? There is no need to give up! Alternative home loan financing options are available.
The alternative options our Bond originators can help you with include:
- Approaching private lenders for financing
- Joint home loan applications with a partner, friend or relative. (View our blog post that highlights the benefits of joint home loans and how being a co-applicant helps seal the home loan deal: Joint Home Loans: Unlocking the Doors to Your Property Investment Dreams.)
- Leveraging Other People’s Money (OPM). Jacques Fouché , IGrow’s CEO and Founder encourages this. You can leverage OPM by getting interested friends or fellow investors to finance part of your property purchase.
Tips from IGrow Bond Originators for first-time buyers
- Make use of a bond originator: we will submit your home loan application to multiple banks. This improves your chances of approval and obtaining the best interest rates and loan terms.
- Understand your affordability level: make use of handy tools like the IGrow Bond Calculator to calculate what is possible in regards to property purchases within your financial means.
- Allow for additional costs: transfer fees can rack up if you exceed the R1.21 million threshold, bond registration fees, and property attorney fees can add up. Make sure you’ve made allowances for extra expenses. Our IGrow bond originators will handle these matters for you and make you aware of unseen costs before you apply for your home loan.
Don’t make credit applications close to your home loan application date: a credit application can temporarily lower your credit score.
Final Thoughts
Whether you are just starting your property investment journey or applying for another home loan within your property portfolio, getting your home loan approved is a breakthrough!
With IGrow’s expert home loans team’s support and guidance, and our nifty tools, such as the bond repayment calculator, you’re not alone in the home loan application process. We will stand by you to ensure your home loan financing process is smooth-sailing and a success!
Book a consultation with IGrow’s Home Loans bond originators and automatically improve your chances of home loan approval!
