To plan for a mortgage bond in South Africa, you must maximize your credit score, try to save a 10% deposit, and calculate your affordability based on gross monthly income.

1. Check Your Financial Health

• Credit Score: Aim for a score above 600. You can check your Credit Score at https://up.experian.co.za/
• Debt-to-Income: Clear outstanding retail accounts and credit cards.
• Bank Statements: Maintain clean statements with no unpaid debit orders.
• Employment: Secure at least three to six months of permanent employment.

2. Calculate Costs and Affordability

• Repayment Rule: Expect monthly bond repayments up to 30% of gross income.
• Deposit: If possible, save 10% to 20% of the purchase price for better interest rates.
• Hidden Costs: Save an extra 8% for transfer duties and legal fees.
• Rate Increases: Budget for future interest rate hikes by the South African Reserve Bank.

3. Gather Required Documentation

• Identity: Valid South African ID document or smart card.
• Income: Latest three months’ payslips.
• Banking: Latest three months’ bank statements.
• Tax: Latest IRP5 or tax assessment from SARS.
• Proof of Residence: Up-to-date rates account or rental account, or similar.

4. Apply Effectively

• Pre-Approval: Get a pre-qualification certificate before house hunting.
• Bond Originators: Use a bond originator to compare multiple banks.
• Negotiation: Compare the offered interest rates (Prime plus or minus).

Ask MortgageMax Silent Partners for a Pre-Qualification Certificate now.