DEBT2BOND
  • HOME
  • NEW PURCHASE
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  • BOND SWITCH
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  • PROTECTION
  • BRIDGING FINANCE
  • APPLICATION FORMS
  • CALCULATORS
DEBT2BOND
  • HOME
  • NEW PURCHASE
  • BOND-FREE
  • BOND SWITCH
  • ADDITIONAL BONDS
  • PROTECTION
  • BRIDGING FINANCE
  • APPLICATION FORMS
  • CALCULATORS

NEW PURCHASE HOME LOAN

REALISE THE HOME LOAN POTENTIAL FOR YOUR DREAM HOME.

Unlock your homebuying potential with DEBT2BOND. 

We leverage our expertise and partnerships with top financial institutions to secure the best deals, guiding you seamlessly to your dream home. 

We handle your application, follow-ups, and negotiate with 

multiple banks to secure the best deal. 


Congratulations on this exciting step toward homeownership! 

UNDERSTANDING

 A home loan is a financial agreement used to purchase property, with the property serving as security for the loan. A mortgage bond, which secures the loan, and the title deed, which proves ownership of the property, are both registered with the Deeds Office. During the loan term, the financial institution holds the title deed. Once the home loan is fully repaid and the mortgage bond is cancelled, the title deed is returned to the homeowner, confirming full ownership. If the loan is not repaid, the lender can claim the property through the mortgage bond. 

PRE-QUALIFICATION

What is Pre-Qualification? 

Pre-qualification is a preliminary assessment conducted to determine how much you may be eligible to qualify for. It's an essential first step that provides you with valuable  insights into your purchasing power and helps you understand what you can afford.


Why Get Pre-Qualified? There are several compelling reasons to get pre-qualified for a mortgage:


  • Know Your Budget: Pre-qualification gives you a clear understanding of your income, assets, debts, and credit  history and much you can afford to spend on a home.
  • Streamline the Process: Pre-qualification streamlines the home buying process by providing a clear picture of your financial readiness to potential sellers and real estate agents.
  • Competitive Advantage: In a competitive market, pre-qualification can give you a competitive edge over other buyers, demonstrating to sellers that you're a serious and qualified buyer.


IMPORTANT NOTE: Once the application has been submitted, the approved loan amount is subject to the bank’s credit assessment and may differ.


START THE PROCESS

PRE-QUALIFICATION

HOME LOAN APPLICATION

HOME LOAN APPLICATION

Find out how much you qualify for to start house shopping. apply for home loan

APPLY

HOME LOAN APPLICATION

HOME LOAN APPLICATION

HOME LOAN APPLICATION

Found a property & signed an Offer to Purchase

APPLY

KEY FACTORS TO CONSIDER

CREDIT PROFILE

CREDIT PROFILE

CREDIT PROFILE

 Review your credit profile and credit score, as these are key factors considered by banks in their credit assessment process. 

Learn more

AFFORDABILITY

CREDIT PROFILE

CREDIT PROFILE

 Affordability is calculated based on your gross and net income, less existing debt repayments and living expenses.

Learn more

RESEARCH

CREDIT PROFILE

RESEARCH

 Research the area or location you’re considering before buying. Plan your budget, lifestyle, travel, and specific needs.

Learn more

COSTS

CREDIT PROFILE

RESEARCH

 Ensure you have funds to cover Transfer & Registration costs. 1st time home buyers may qualify to have these costs included. 

Learn more

NEGOTIATION

DOCUMENTATION

DOCUMENTATION

 Purchase prices can often be negotiated, and a pre-qualification strengthens your position by demonstrating your financial readiness to purchase a property. 

Learn more

DOCUMENTATION

DOCUMENTATION

DOCUMENTATION

 Avoid delays by ensuring all the necessary supporting documents required for the pre-qualification and by the banks, are prepared for submission. 

Learn more

PROCESS

DOCUMENTATION

T's & C's

  DEBT2BOND will submit your application to multiple banks, securing the financing you need and the best possible deal while providing constant feedback. 

Learn more

T's & C's

DOCUMENTATION

T's & C's

  Make sure you have a clear understanding of all the legal Terms and Conditions outlined in your Bond Agreement before signing and accepting it.

Learn more

PROTECTION

INSURANCE

INSURANCE

INSURANCE

Life & home insurance provide financial security, ensuring peace of mind for life's uncertainties.

Learn more

WILL'S

INSURANCE

INSURANCE

Ensure your legacy is honoured, assets distributed & loved ones protected with a Last Will & Testament.

Learn more

HOME LOAN APPLICATION PROCESS

Guidelines To Your Home Loan Application

1. PRE-ASSESSMENT

2. SUBMISSION TO THE BANK

2. SUBMISSION TO THE BANK

 Pre-Qualification Assistance: DEBT2BOND provides a system-generated certificate that evaluates your creditworthiness and affordability, offering a clear understanding of your financial standing and readiness for a home loan.


  • Confident House-Hunting: With your pre-qualification certificate, you can confidently search for properties within your budget, giving sellers peace of mind about your financial preparedness and bringing you closer to your dream home.
  • Home Loan Support: Once you’ve found your ideal property and submitted a signed Offer to Purchase, we handle the home loan process from start to finish. Our team ensures constant communication throughout the process, keeping you informed every step of the way and securing the most favourable deal tailored to your needs.
  • Single Application, Multiple Banks: With just one application, DEBT2BOND submits your details to multiple financial institutions, including your own bank, enabling you to compare competitive offers and choose the best option.
  • Expert Negotiation: We leverage our industry knowledge and relationships with banks to negotiate the best interest rates and terms, ensuring you save money over the long term.
  • Streamlined Process: From pre-qualification to bond registration, our team guides you every step of the way, ensuring a seamless experience so you can focus on planning for your new home.


With DEBT2BOND, the home-buying journey becomes easier, faster, and tailored to your financial goals.


2. SUBMISSION TO THE BANK

2. SUBMISSION TO THE BANK

2. SUBMISSION TO THE BANK

  • Document Submission: Once we receive all required documentation, including ID copies, payslips, and bank statements, we promptly submit your application to multiple banks. This ensures a thorough review by various lenders, maximizing your chances of securing the best offer.
  • Approval in Principle: If your credit profile, scoring, and affordability meet the bank’s criteria, an Approval in Principle is typically issued within 2–3 business days. This conditional approval is a crucial step, pending a satisfactory property valuation.
  • Property Valuation: After Approval in Principle, the bank arranges a professional valuation of the property to confirm its market value. This step ensures the property aligns with the bank’s lending criteria and protects both you and the lender.
  • Final Approval: Upon successful valuation, the bank issues a Final Approval. This document details the approved bond amount, applicable interest rate, monthly repayment terms, Homeowners Insurance premiums, and any special conditions or associated costs.
  • Offer Evaluation: DEBT2BOND provides a detailed comparison of all approved offers, empowering you to select the one that best aligns with your financial goals and preferences. We guide you through understanding key elements such as interest rates and repayment terms.
  • Confirmation: Once you’ve made your choice, we notify the bank and facilitate the finalisation of the agreement, ensuring a seamless transition to the bond registration process.


At DEBT2BOND, we handle every detail with precision and care, ensuring a smooth and transparent journey toward owning your dream home.

3. ATTORNEY PROCESS

4. BOND REGISTRATION PROCESS

4. BOND REGISTRATION PROCESS

  •  Final Approval & Instruction: Once Final Approval is processed, the bank sends instructions to the Registering Attorneys, who coordinate with the sellers’ attorneys to prepare bond registration documents.
  • Bond Attorney Role: The Bond Attorney, appointed by the bank, requests the draft deed and guarantee requirements from the Transfer Attorney.
  • Document Signing & Transfer Costs: Both buyer and seller sign the transfer documents, with the buyer covering transfer costs. The Transfer Attorney handles rates & taxes, obtains the rates clearance certificate, and manages transfer duty payments.
  • Bond Documents & Guarantees: Bond documents are signed by the buyer, and guarantees are sent to the Transfer Attorneys, who forward them to the Cancellation Attorneys for seller’s bank consent.
  • Payment of Bond Costs: The buyer pays bond costs to the Bond Attorneys if these are not included in the bond.
  • Lodgement of Documents: Once all documents and payments are finalized, the Transfer, Bond, and Cancellation Attorneys lodge the paperwork with the Deeds Office.
  • Deeds Office Processing: The Deeds Office typically processes the documents within 7–10 working days.
  • Guarantee Payments & Registration: Guarantees are paid on the day of bond registration, which generally takes 8–12 weeks but may be delayed by incomplete information.

4. BOND REGISTRATION PROCESS

4. BOND REGISTRATION PROCESS

4. BOND REGISTRATION PROCESS

  • Deeds Registration: Attorneys lodge the necessary documents at the Deeds Office to complete the transfer process.
  • Ownership Transfer: Ownership of the property is officially transferred from the Seller to the Buyer.
  • Bond Registration: The Buyer's new bond is registered, securing the property's financing, while the Seller's existing bond is cancelled.
  • Settlement of Guarantees: Financial guarantees, including the settlement of the purchase price, are processed and finalized.
  • Seller's Proceeds: The Seller receives the net proceeds from the sale after all deductions, including outstanding bond amounts and legal fees.
  • Agent's Commission: The Estate Agent's commission is paid as per the sale agreement.
  • Property Handover: The new owner officially takes possession of the property, marking the completion of the transaction.
  • Congratulations: You are now officially a homeowner and can begin enjoying your new property.
  • Document Return: Within approximately 3 months, the original Title Deed and Bond Documents are returned to the Attorneys by the Deeds Office for final processing.
  • Title Deed Delivery: The original Title Deed is then sent to the Bank (for bonded properties) or directly to the Owner (for cash purchases), with copies typically provided to both the Buyer and Seller for their records.

KEY FACTORS IN DETAIL

Essential Information on your Home Loan Journey

CREDIT PROFILE

When applying for bond finance, banks will request a credit report to review your payment history and assess how well you’ve managed your accounts. Your credit score, which reflects your repayment behaviour, serves as a key guideline for banks during the evaluation process.


It’s important to obtain a copy of your credit report to ensure your accounts are up-to-date and free from any discrepancies or adverse remarks. If any issues are present, resolve them before submitting your bond application.

For joint applications, both applicants should ensure their credit reports are clear to avoid complications during the assessment.


CREDIT BUREAUS
(You are allowed 1 FREE credit report per year and may require registration with the credit bureau.)
Transunion ITC – https://bit.ly/4fvGI0b

Experian – https://bit.ly/3UYPHyp

AFFORDABILITY

When determining how much you qualify for, it’s essential to align it with what you can realistically afford. Factor in potential interest rate increases and the bond term (typically 20–30 years). A simple guideline is to calculate 30% of your gross income (before deductions) as the maximum bond repayment.

The affordability assessment considers your net income (take-home salary) minus current debt repayments and living expenses, leaving a surplus for affordability.


Example:


  • Gross Income: R30,000 x 30% = R9,000 (Max bond repayment)
  • Net Income: R22,000 – Bond repayment (R9,000) – Debt (R5,000) – Living expenses (R6,000) = R2,000 surplus


Debt2Bond’s pre-qualification service provides an initial estimate of your financing eligibility, helping you understand your affordability and purchasing power.

RESEARCH PROPERTIES

Now that you've determined your qualifying price range, it's time to initiate the search.


Consider these key factors:


  • Recent selling prices in the area
  • Growth in property value over recent years
  • Property condition
  • Crime rates in the area
  • Parking availability
  • Security measures
  • Proximity to schools and public transport services
  • Additional costs for travel and maintenance of recreational areas
  • Estimated cost of renovation if the property requires TLC.


TYPES OF PROPERTIES


  • Freehold: Freestanding homes, including semi-detached houses. Ownership includes both land and building with a registered ERF number. Property owner is responsible for municipal rates and taxes. 


  • Sectional title: Applies to flats/apartments, townhouses, and duplexes. Owners may purchase parking bays or garages under exclusive rights. Property is managed by a body corporate. Maintenance costs are shared among owners through monthly levies, excluding water and electricity.


  • Developments (Off-Plan): Buying a property in a sectional title complex or scheme before it is built. In most cases the transfer costs are included in the purchase price, however where the purchase price is higher than R1 100 000, transfer duty is applicable. Customization options may include size, bedrooms, location, design, colour schemes, and fixtures. Some schemes may require a deposit to secure commitment. Protection under the Customer Protection Act ensures developers adhere to chosen specifications.

NEGOTIATION

When discussing a property’s asking price, it’s vital to consider recent market-related sale prices in the area. An estate agent can assist by comparing properties of similar size and features, such as the number of rooms, built-in cupboards, and other amenities. Be sure to inquire how long the property has been on the market and the reason for its sale.


When signing the Offer to Purchase or Deed of Sale, you can negotiate the inclusion of specific conditions, such as repairs or replacements for damaged items like windows, door handles, or other fixtures. These agreed-upon conditions must be fulfilled before the bond is registered. Additionally, you may request certain fixtures—such as light fittings, curtain rails, blinds, or kitchen appliances (e.g., hob and oven)—be included in the sale, ensuring these items are clearly listed in the Offer to Purchase.


It’s important to remember that many properties are sold under a “voetstoots” clause, meaning they are sold “as is.” This clause protects the seller from liability for defects unless they were deliberately concealed. Therefore, buyers are encouraged to inspect the property thoroughly, identify any issues, and address them in the agreement before finalizing the sale.


  • Pre-Qualification: Obtaining a pre-qualification or pre-approval helps reduce the seller’s waiting period for buyer approval and provides a guideline for your creditworthiness and affordability. DEBT2BOND can assist you with this process. 


  • Occupational Rent: If you wish to move into the property before the transfer is finalized, you may be required to pay occupational rent. The negotiated amount will be specified in the Offer to Purchase.


  • Conditional Sale Based on Selling Your: If you have an existing property to sell, the Offer to Purchase can include a clause stating that the agreement is subject to the sale of your current property. In most cases, both the sale of your existing property and the registration of the new one will happen simultaneously.


  • Latent Defects: Latent defects are hidden flaws that may not be immediately visible, such as dampness, leaking roofs, faulty geysers, or internal plumbing issues. If you suspect any issues, it’s advisable to hire a professional inspector. Sellers are obligated to disclose any latent defects to avoid future liability. Listing known defects in the sale agreement is a best practice for both parties.


  • Patent Defects: Patent defects are visible issues, such as wall cracks, broken windows, or damaged gutters. These should be noted during your property viewing and addressed in the Offer to Purchase if they raise concerns.

COSTS

When you register a mortgage bond (home loan) with the bank, an initiation fee is applicable. 

This fee can either be included in your bond amount or paid in cash.


The mortgage bond process involves two sets of attorneys:


  • Transferring attorneys handle the transfer of the property from the seller's name into your name.
  • Registering attorneys manage the registration of your bond in favour of the bank.


Both sets of attorneys charge fees for transfer costs (based on the property value/purchase price) and registration costs (based on the approved bond amount).


First-time home buyers may qualify for a 105 - 108% bond from certain banks, which includes a portion of the registration costs. However, this is subject to affordability and credit assessment by the bank & only available to 1st time homeowners.


The cost relevant to the purchase of a property are as follows:


  • Registration costs:  This is a fee charged by the banks nominated attorneys to attend to the registration of your bond.  Subject to affordability – the registration costs or part thereof may be included in the bond amount and paid to the attorneys on date of registration. Certain banks may consider +105% loan amount to accommodate the registration costs, however, this will be applicable to 1st time homeowners only.


  • Bank’s initiation costs: The bank will include the initiation cost in the bond amount which is a fee charged by the bank to process your home loan application. This fee may be included in the total bond amount, or you may opt to pay it separately.


  • Transfer costs: This is a fee charged by the nominated attorneys who attends to the transfer of the property into your name. The seller is represented by the transferring attorneys and is usually stipulated in the offer to purchase/Deed of sale.


  • Transfer Duty: Transfer duty paid to SARS (properties sold for less than R1 210 000 are exempt from transfer duty). 


  • Deposit: DEBT2BOND will always apply for 100% bond where NO DEPOSIT will be required, however, dependent on the type of application, the financial institutions may request a certain percentage to be paid by the client (This percentage determines the deposit required).


  • Deeds Office registry Fee: Deeds office fees payable to the Deeds Registry for registration of the deed of transfer.


  • Post, petties FICA other fees: Post & Petties cover expenses, FICA fees, payable to the transfer attorney to cover expenses for the verification process of the parties in terms of the Financial Intelligence Centre ACT. Deeds office search fees to cover expenses for electronic searches at the Deeds registry and for copies of title deeds.


  • Pro-rata municipal rates & Taxes or levies: Fees payable to the seller for the period from the date of registration till the end of the last month for which the clearance certificate was issued- which amount was paid by the seller in advance. 


  • FIRST HOUSING FINANCE (Formally known as FLISP) First Home Finance was developed by the Department of Human Settlements to enable sustainable and affordable first-time homeownership opportunities to South African citizens and legal permanent residents earning between R3,501 and R22,000 per month, (the ‘affordable’ or ‘gap’ market). Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the government free-basic house. For more information https://www.nhfc.co.za/finance-solutions/first-home-finance/

DOCUMENTATION

A signed copy of the Offer to Purchase is necessary to process your home loan application, along with the following documents based on your applicant type:


Employed Individual(s)

(Applicable to both applicants in joint applications)


  • Completed and signed DEBT2BOND HOME LOAN Application Form,
  • Copy of ID(s),
  • Last 3 months’ payslips (6 months’ payslips required if earning regular overtime or commission),
  • Last 3 months’ bank statements 
  • Rental Agreement (if additional income is earned, rental income must be paid into a bank account)


Self-Employed/Business Owners


  • Completed and signed DEBT2BOND HOME LOAN Application Form, 
  • Proof of income: Letter of Drawings from an Accountant (for all applicable applicants),
  • Latest 3 months’ personal bank statements (for all applicable applicants),
  • Personal Assets & Liabilities Statement,
  • Latest 6 months’ business account bank statements,
  • Latest 2 years’ Annual Financial Statements,
  • If Annual Financial Statements are older than 6 months, Current Management Accounts (not older than 2 months) signed by both the applicant and accountant must be provided alongside the Annual Financial Statements,
  • Copy of ID document(s) (for all applicable applicants),
  • Copy of Registration Documents or Trust Deed (for Trusts).

PROCESS

  • A Bond Attorney appointed by the bank that is registering your bond will request the draft deed and guarantee requirements from the transfer attorney. 
  • The buyer and seller sign the transfer documents. Additionally, the buyer pays transfer costs while the Transfer Attorney settles rates & taxes, obtaining a rates clearance certificate. The Transfer Attorney also handles the payment of transfer duty, essential for registration.
  • Bond documents are prepared for signing by the buyer, and guarantees are sent to the Transfer Attorneys. These guarantees are then forwarded to the cancellation attorneys to secure consent for cancellation from the seller’s bank.
  • The buyer covers bond costs, remitting payment to the Bond Attorneys.
  • After all documents are signed and payments made, the transfer, bond, and cancellation attorneys lodge the necessary paperwork.
  • Following lodgement, the deeds office requires approximately 7 – 10 working days to process documents before registration.
  • Payment of guarantees is finalized on the day of bond registration.
  • The registration process typically spans 8 to 12 weeks. However, delays may occur if information is incomplete.


Delays may arise from:


  • Incomplete personal information provided by the seller and/or buyer
  • Failure of the seller to provide details of the bank holding the existing bond
  • Non-provision of cancellation figures and title deeds by the existing bondholder to the transferring attorney
  • Delay in receiving rates figures and/or clearance certificates from the local authority
  • Failure of the buyer to meet deposit, transfer fees, and/or bond costs deadlines
  • Delay in signing transfer documents and/or bond documents by the buyer or seller.
  • Copy of Registration Documents or Trust Deed (for Trusts)

TERMS & CONDITIONS

Bond Approval and Interest Rate Options


Once the bank approves your home loan based on credit criteria, affordability, and property value, a Final Approval is issued. This document outlines the bond conditions, including:


  • Approved bond amount
  • Interest rate
  • Bond term
  • Monthly repayment amount


The repayment includes additional costs such as:


  • Monthly service fee
  • Homeowners Insurance
  • Life Protection Assurance (if applicable)


The total cost of credit is detailed, which includes the loan amount, interest fees, charges, and initiation cost.


Types of Interest Rates


  • Variable Interest Rate: This is the most common rate offered unless a fixed rate is specifically requested. It is tied to the South African Prime Interest Rate. For SA Home Loans, rates are linked to the Johannesburg Interbank Agreed Rate (Jibar), which fluctuates over 3-month periods. The Jibar rate is typically 3.5% below the prime rate, with an added Link Rate determined by your risk profile.


  • Fixed Interest Rate: You may only apply for the fixed rate option after registration. It is offered for a specified term, this rate remains unchanged, providing protection against interest rate increases. While your monthly payment stays consistent, you won't benefit from rate decreases, and fixed rates are often higher than variable rates at the time of application.

CONTACT US

GET IN TOUCH

If you’d like more details about a product or service, explore options suited to your financial needs, or share your experience with us, feel free to reach out, we would love to hear from you.

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CONTACT DETAILS

EMAIL: info@debt2bond.co.za WhatsApp: 064 536 5720

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