Blog post summary

• Financial institutions generally use very rigorous conditions when examining domestic-loan candidates who possess no deposit as they are considered dramatically riskier.
• Common requirements to possess no-deposit individuals start around a clean credit history, an effective fees records, secure a job and you can an elementary style of and you will location regarding prospective property.
• Guarantor money are great for borrowers who’ve a typical credit ability and income, however, lack the ways to gather the original deposit.

For many people, to get a house falls under the great Southern African fantasy. Yet on the high cost-of-living, saving getting in initial deposit could be extremely difficult.

In fact, for many who fall into these kinds of homebuyer, you’re not by yourself. Nearly half all apps gotten by ooba come from people who possess no usage of a deposit, claims Kay Geldenhuys, Possessions Loans Running Director in the South Africa’s largest thread creator.

Surprisingly, it isn’t impossible to score 100% financial support. In fact, a serious 74% or three-out out-of four in our candidates was successful in the securing a no-deposit bond, because the other people are required to boost a fairly brief deposit, generally only 1 that is anywhere between five and you can ten% of one’s cost.

Geldenhuys teaches you that people that rating zero-put loans try first-go out customers who’ll live-in the brand new home they buy. Banking institutions prefer this type of consumers as they constantly spend the fund punctually.