Home Loans

Become a proud homeowner with a reputable home loan of up to R25M, and enjoy variable and fixed-rate options from as little as 3% over terms of up to 30 years – Get started on your exciting home loan journey by accessing the very best mortgage providers.

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No Deposit Home Loans Available Online

Pre-approval is easy when you apply for a home loan online. Access South Africa’s most reputable home loan lenders with an easy online application form.

No deposit mortgages with the lowest interest rates are now at your disposal.

Frequently Asked Questions

Become a homeowner or begin your real estate investment journey today

Whether you’re in your twenties, thirties or forties - owning your very own home will certainly be high on your list of financial priorities and goals and as with any worthwhile investment, it certainly doesn't come easy.

Apart from conducting market research, looking for a property, saving for a deposit and finding a lender you also need to worry about conveyancing, attorney and deeds office fees that will all add up to a substantial sum.

We aim to help you understand the process of buying your very first home and provide you with a comprehensive list of mortgage providers that you can review and use to find the best lender for your needs and future goals. Finding the right lender starts with good research and ends with a comprehensive comparison of a variety of offers.

Types of Home loans in South Africa

Being such a big commitment, one of the most important things that you need to know about home finance is that they aren't all the same. One of the primary distinctions made by lenders is that of fixed-rate, variable or, floating-rate loans.

A fixed-rate loan is one where the borrower pays a fixed monthly mortgage instalment for a fixed period of time (usually -between 12 months and 2 years) before the variable interest rate is applied and the loan amount repaid each month fluctuates slightly.

When it comes to property finance, South Africans are certainly spoilt for choice with each bank and alternative mortgage provider offering an array of different mortgage products to meet a certain need or to reach a specific target market.

There are specific property finance products designed to help people who are in the lower to mid-level income bracket and even home loans for individuals who are retired. Some loan providers offer packages that allow you to access credit on a revolving basis - similar to a personal loan - that you can use to buy furniture, upgrade your home or conduct repairs when necessary.

Property finance providers in South Africa

All of South Africa's major banks offer mortgages to South Africans who qualify - this includes large banks like ABSA, FNB and Nedbank, among others.

Furthermore, each of the registered financial providers has its own set of quite unique and distinct property finance options for customers - including some that allow homeowners to access a revolving line of credit or rather, a personal loan whenever it's needed.

Apart from these major banks that offer competitive financial solutions, there are also a handful of alternative bond providers like SA Home Loans. Loans South Africa have put together this comprehensive list of lenders to help make the home buying process easier, quicker and more enjoyable for you.

We also advise that you make use of a mortgage comparison website or service so that you can identify features that meet your needs and of course identify the best offer on the market.

Saving for a deposit

Typically, most lenders will require the buyer to put down a 20% deposit to secure a mortgage, provided that the buyer's credit profile is up to standard and they have sufficient income to make the monthly mortgage payments.

Some lenders have introduced loan products that do not require buyers to put up a deposit, especially if they come from a low-income family or job that simply makes it impossible for them to save for a down payment.

While it may be possible to avoid the 20% interest when buying a home, particularly if you're a first time home buyer, however, paying a deposit will have many profound advantages for you in the short and long term.

These advantages include the following:

  • Putting forth a deposit will increase your chances of having your loan approved
  • An estate agent or seller will consider your offer more seriously if they know you have a deposit
  • A deposit will decrease your monthly repayments
  • You will save a large amount of money in interest

Many first time home buyers cannot come up with a deposit and this affects their chances of being approved for a mortgage not to mention that they will end up paying significantly more in interest payments in the long run. Even if you put up a 5% deposit, it's simply better than nothing.

Getting pre-approved for a Home loan

When looking to buy a home one of the most important first steps is to secure pre-approval. This is essentially a conditional approval that is given by a mortgage provider to an individual or couple looking to purchase a home.

Pre-approval not only gives you an idea of what the mortgage provider will be willing to lend you but, it will give you more bargaining power with the seller and give more weight to any offer that you put on the table.

When you apply for pre-approval the lender will consider your household income minus any existing debts and expenses which will result in a monthly disposable income. As a general guideline, no more than one-third of a buyer's monthly income should be used to pay a mortgage instalment.

Buying your first home

As a first time home buyer, your first priority should be to save for the deposit on your home. This is best done by arranging a direct deposit from your monthly salary into a separate savings account.

During this time you should also request a copy of your credit report so that you can see where you stand and if your credit is sufficient to have you approved for a home loan. For those who have a lack of credit history applying for a credit card may help you boost your credit score and prove that you are indeed capable of managing debt.

Most large banks offer credit building credit cards which will provide you with a small credit limit to use and then repay according to your credit agreement. Opening up a store card with any major retailer can also help you develop a credit score provided that you make the minimum repayments on time every month.

Hidden costs in buying a home

Apart from the deposit that buyers may need to put forth and the estate agent's commission paid to the agent, there is a range of additional costs that need to be considered.

These include conveyancing fees which include bond registration fees, sundries and petty expenses, deeds office registration fees, transfer duty, administration and loan initiation fees which are charged by the lender and insurance fees among a few other provisions.

You should aim to save around 8% of the purchase cost of the property to cover these expenses which do not include the deposit.

Repaying your loan early

If you do have an emergency fund and additional cash flow to direct towards paying off your debts then you could save hundreds and even, thousands of pounds. The first loan that people usually want to repay early is their home loan - surely being tied down for years of your life by a mortgage may seem daunting - and, making extra payments could save you a lot of money.

Mortgages usually come with very reasonable interest, since the loan amount is large and the loan term is lengthy but, this means that you have to pay that reasonable interest over a much longer period of time.

So the total amount you pay at the end of the day towards interest is going to be quite significant. By making "extra" payments on a regular basis you could reduce the interest and pay off your loan much sooner, however, you must always look at your other debts first - particularly credit card debt and other short-term loans first.

This is because short term debt usually carries higher interest than long term debt and you could save a lot more by repaying these first. If you want to go ahead and make additional payments on your loan - you should read through your mortgage agreement and see what your lender's overpayment policies are - most will allow homeowners to repay an additional 10% annually without incurring any penalties and, if so, then you should focus on making only this extra payment.


List of direct lenders offering Home Loans

  1. SA Home Loans Home loan

    SA Home Loans

    • Loans up to R500,000
    • Term up to 30 years
    • Interest from 9.25%
  2. Capitec Home loan

    Capitec

    • Loans up to R250,000
    • Term up to 30 years
    • Interest from 9.25%
  3. ABSA Home Loan Home loan

    ABSA Home Loan

    • Loans up to R1,000,000
    • Term up to 30 years
    • Interest from 7.5%
  4. Nedbank Home loan

    Nedbank

    • Loans up to R500,000
    • Term up to 260 months
    • Interest from 10.50%
  5. RMB Private Bank Home loan

    RMB Private Ban...

    • Loans up to R350,000
    • Term up to 20 years
    • Interest from 9%
  6. FNB Home Loan Home loan

    FNB Home Loan

    • Loans up to R300,000
    • Term up to 30 years
    • Interest from 10.50%
  7. Ooba Home loan

    Ooba

    • Loans up to R125,000,000
    • Term up to 30 years
    • Interest from 7.25%
  8. Real People Home loan

    Real People

    • Loans up to R120,000
    • Term up to 48 months
    • Interest from 24.95%
  9. Just Money Home loan

    Just Money

    • Loans up to R250,000
    • Term up to 84 months
    • Interest from 20%
  10. NHFC Home loan

    NHFC

    • Housing finance
    • Reliable loan advice
    • Low rates and fees
  11. Home Loans South Africa Home loan

    Home Loans Sout...

    • Loans up to R1,000,000
    • Term up to 20 years
    • Interest from 8.5%
  12. TUHF Home loan

    TUHF

    • Tailored home loans
    • Low rates and fees
    • Apply online
  13. Better Life Home loan

    Better Life

    • Loans up to R8,500,000
    • Term up to 20 years
    • Interest from 7.25%
  14. Mortgage Market Home loan

    Mortgage Market

    • Compare home loans
    • Term up to 30 years
    • Interest from 5%
  15. Finance Quotes Home loan
  16. Better Compare Home loan

    Better Compare

    • Compare loan quotes
    • Get the best deal
    • Online loan comparison
  17. Investec Home loan

    Investec

    • Loans up to R300,000
    • Term up to 30 years
    • Interest from 8.5%
  18. Finsap Home loan

    Finsap

    • Apply online
    • Term up to 10 years
    • Interest from 5.0%
  19. Marlyn Credit Home loan

    Marlyn Credit

    • Loans up to R2,000
    • Quick loan advance
    • Low interest rates
  20. Bond Buddy Home loan

    Bond Buddy

    • Online pre-approval
    • Low rates and fees
    • High loan approval rates
  21. Bond Busters Home loan

    Bond Busters

    • Expert loan services
    • Paperless applications
    • Save on interest
  22. Multi NET Home loan

    Multi NET

    • Pre-qualify online
    • Term up to 20 years
    • Interest from 7.25%