Non-residents will have to fund 50% of the value of the property and pay for all costs that will be incurred i.e. bank costs, transfer costs and attorney costs (normally about 8% of the property value); the other 50% will be funded via a mortgage bond from the bank of their choice and normal lending criteria will apply i.e. affordability, credibility and the property offers good security.

13 Sep 2007

Non-residents will have to fund 50% of the value of the property and pay for all costs that will be incurred i.e. bank costs, transfer costs and attorney costs (normally about 8% of the property value); the other 50% will be funded via a mortgage bond from the bank of their choice and normal lending criteria will apply i.e. affordability, credibility and the property offers good security.

South Africans working and living out of South Africa

There has been an increased demand for South Africans living overseas to purchase property back home.

The Banks will lend to these individuals, but they will not lend more than 80% of the value of the property. The reasoning behind this is that there is a concern that when they return they will not necessarily be earning the same income and be able to afford the home loan repayment. Once again the normal lending criteria will still apply. The Banks will have to be very certain of the following: • Stable employment • Employers contact details to confirm employment • Proof of income • 6 months bank statements of where salary is credited • Property being bonded offers good security The Banks are flexible, but the client's profile and earnings will determine their decision. For example, a higher risk loan will be considered in the case of a high income earner, who with all expenses taken off, still has a low ratio of gross income to net income.

This varies from bank to bank, but the 80% rule is the norm