Purchasing your first home is one of the most important commitments you will ever make. The majority of us are not conveyancers or property specialists and there is a digital mountain of information out there on the process and what is required of you. I had no experience on this and searched numerous sites and forums for information and at first was very confusing.
All that I knew from the start was how much I could afford on a monthly basis based on the ABSA repayment calculators. It is also important that you have an idea of how much deposit you are able to put down on the bond for the property. This will affect your bond approval and what repayment you are afforded. The banks currently favour first time buyers for approvals BUT all this means nothing if you do not have a good credit rating.
If you have short payed or missed a monthly payment on any credit account or loan it will reflect badly on your profile. This will negatively affect your application and more than likely return declined. Pay your bills people, it’s the right thing to do.
The first step in purchasing your first home would be sourcing a credit profile to make sure you are credit worthy. The bank will not lend you money if you have a bad record for paying current loans. If you do not have a credit history, the first thing to do is apply for a retail account such as Stuttafords or Edgars clothing account. Build up a credit history with perfect payments and you will be set for the application process.
Legally you are allowed one free credit profile per year which is available at any reputable credit bureau. I sourced mine from Experian™ credit bureau. {URL in image below}

The next step entails making an offer on the property (assuming you have found the property your heart desires) which involves a legal document called a Deed of Sale or simply an Offer To Purchase aka OTP. This needs to be vetted by an attorney or conveyancer as this document is legally binding and details all the terms and conditions for the sale.
Once the Deed of Sale has been agreed on and signed, you can proceed to the bank and apply for the bond.
In short –>
- Save, save, save for a sizable deposit on the property.
- Build a good credit history with on time payments.
- Work out an affordable monthly budget for the repayments.
- Make an offer on the property by means of an Offer to Purchase or Deed of Sale.
- Once agreed and signed (OTP), head to your bank and apply for the bond.
- On approval, the transfer and bond attorneys will be in touch for you to furnish required documents and sign bond papers.
- Lodgement to the deeds office can take up to 18 days so its a waiting game.
- On Registration fees are due to the transfer and bond attorneys. (You are looking at around R20,000 for both but this depends on the price of the property and excludes Transfer Duties)
The whole process can take up to 3 months so prepare for a long winded period of patience and correspondence.
I have banked with ABSA for more than 15 years so it was an easy decision to go with my current bank. They afforded me an excellent interest rate (which was below prime) and the service was fantastic – I was notified about the approval within 2 days!
Have any questions? Feel free to pop over to Let’s Talk or Sign off in the comments.
For more information or to apply for the ABSA FlexiReserve Home loan visit URL in image below –>
