APPLY FOR A HOME LOAN

We specialise in all types of mortgages.

Whether you’re a first-time buyer, many-time mover, looking for a large loan or a buy-to-let landlord, we’ve got you covered.

At No cost to You, we can assist with the following professional services:

  • New Loan
  • Further Loans on your Existing Property
  • Building Loan
  • Insurance Referral
  • Commercial Finance Referral

HAVE QUESTIONS ?

WE MIGHT HAVE THE ANSWERS HERE.

GET PRE-QUALIFIED

You will need to Complete…

  • The Pre-Qualification Form (complete as accurately as possible)

And Send it back to us with …

  • Clear ID/Passport Copy
  • Latest 3 Months’ Payslips (6 months will be required if your income fluctuates). Weekly/biweekly earners, will need a full 6 months worth of payslips – 2 weeks x6 months, or 4 weeks x6 months.
  • Copy of Lease Agreement (only if you get Rental Income)

Please let us know which Banks you hold accounts with.

What if the bank finds a lower value in the property ?

You can have peace of mind that the bank will not approve a loan, where they have not found value. It is however true that in some cases you will find three banks finding value without a problem and another finding lower value. The banks don’t use each other’s valuation reports and will rely only on their own valuators report. Should you wish to arbitrate/motivate the banks decision, we will have to provide at least 4 registered sales within the past 6 months, which shows similar purchase prices or higher in the same area, as the property in question. We will then motivate for a second opinion to be given. Some of the banks may insist on an amended OTP, where the purchase price was lowered, while other banks will simply make a lower offer. If you as the buyer are prepared to pay the difference needed, that will be fine.

So you bought a property on an auction for a bargain and hope to lend more money than the purchase price, based on the assumption that there is higher value?

The banks consider the purchase price or the value whichever is the lowest, as the price they will work with. They will therefore not offer more than the purchase price, unless we can provide quotations for the renovations you wish to do to the property. The renovation money will also not be paid out as a lump sum, but kept on retention and as progress is made, the bank will release progress payments for the renovations, very similar to a building loan.

House Hunting? Payneless Bonds can help you Pre-Qualify for a Home Loan, so you’ll know exactly what you can afford before you find your dream home.

Simply complete our bond Pre-Qualification form and we will contact you at your convenience to complete the process.

You will need to complete
  • The Pre-Qualification Form (complete as accurately as possible)
And send it back to us with
  • Clear ID/Passport Copy
  • Latest 3 Months’ Payslips (6 months will be required if your income fluctuates). Weekly/biweekly earners, will need a full 6 months worth of payslips – 2 weeks x6 months, or 4 weeks x6 months.
  • Copy of Lease Agreement (only if you get Rental Income)

Please let us know which Banks you hold accounts with.

What if the bank finds a lower value in the property ?

You can have peace of mind that the bank will not approve a loan, where they have not found value. It is however true that in some cases you will find three banks finding value without a problem and another finding lower value. The banks don’t use each other’s valuation reports and will rely only on their own valuators report. Should you wish to arbitrate/motivate the banks decision, we will have to provide at least 4 registered sales within the past 6 months, which shows similar purchase prices or higher in the same area, as the property in question. We will then motivate for a second opinion to be given. Some of the banks may insist on an amended OTP, where the purchase price was lowered, while other banks will simply make a lower offer. If you as the buyer are prepared to pay the difference needed, that will be fine.

Think you got a bargain?

So you bought a property on an auction for a bargain and hope to lend more money than the purchase price, based on the assumption that there is higher value?

The banks consider the purchase price or the value whichever is the lowest, as the price they will work with. They will therefore not offer more than the purchase price, unless we can provide quotations for the renovations you wish to do to the property. The renovation money will also not be paid out as a lump sum, but kept on retention and as progress is made, the bank will release progress payments for the renovations, very similar to a building loan.

House Hunting? Payneless Bonds can help you Pre-Qualify for a Home Loan, so you’ll know exactly what you can afford before you find your dream home.

Simply complete our bond Pre-Qualification form and we will contact you at your convenience to complete the process.

WHAT WILL I NEED?

You will need to ….

  • Get Pre-Qualified so that we can assess your current affordability and the amount the banks will be willing to lend you.  You will then be able to make an informed decision, whilst househunting.
  • Once pre-qualified, we will then request the necessary Bond Application Documents, applicable to your Application.
  • You can then find property that falls within your affordability bracket and sign an Offer To Purchase with the Seller of the property or Estate Agent.
  • You will Prepare and Complete all the required Bond Application Documentation and send it back through to us.
  • Once the Bond Application Documents are complete, we will submit to the Banks, together with a signed Offer to Purchase.
  • The banks will take around 5 working days to issue an AIP (Approval in Principal), which means they are happy with you as a client, and your scoring and affordability is in order.
  • An AIP is issued, the Valuation of the property will then be requested by the bank.
  • The banks Valuator will visit the property to do a Physical Valuation to assess that there is sufficient value for the purchase price, although in some cases and especially with Sectional Title properties, the banks will do a Desktop Valuation, which means they work with the current data on the system as comparable figures, to establish value.
  • Once the banks valuation has came back favourably, they will issue a final quotation / formal approval / grant (every bank uses different terminology).
  • Once a Final outcome has been given, we will communicate with you to discuss which outcome you want to accept before Signing and sending the Approval back through to us.
  • Once you have accepted the Final Approval the Attorneys will be instructed by the banks which will then arrange for you to sign the documents, in preparation for the registration.
  • Most registrations takes 8 to 12 weeks before the property is Registered in the buyer’s name, although there are exceptions.
NEED A NEW LOAN?

Why Rent when you can Buy?

Obtaining a home loan can become rather time consuming and stressful, so why not leave it to the Payneless Team, we will negotiate on your behalf to the banks, and constantly follow up during the process to supply you with feedback.

We will make sure that you get the best possible outcome available and interest rate to match.

We will approach all the available banks within their specific lending criteria, so that you will be able to choose which bank, you would like to proceed and accept.

If you have any further questions, please do not hesitate to contact us further, or come visit us at our offices.

Once Pre-Qualified

You will need to Complete…

  • The Application Form
  • Signed & Completed Dea Consent Form
  • Signed & Completed Credit Check Consent Form
  • You will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.

And Send it back to us with these…

  • Clear ID/Passport CopyClear ID/Passport Copy
  • Copy of Marriage Certificate (if married).
  • Proof of Current Address (no older than 3 months, and non PO Box).
  • Latest 3 Months Payslips (6 Months will be required if your income fluctuates). If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Latest 3 Months Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months will be required if your income fluctuates).
  • Copy of Lease Agreement (only if you get Rental Income)
  • Copy of your Degree (if applicable)
  • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
  • If Self-Employed all the Self-Employed documents will Apply.

To apply for a New Loan, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

Why Rent when you can Buy?

Obtaining a home loan can become rather time consuming and stressful, so why not leave it to the Payneless Team, we will negotiate on your behalf to the banks, and constantly follow up during the process to supply you with feedback.

We will make sure that you get the best possible outcome available and interest rate to match.

We will approach all the available banks within their specific lending criteria, so that you will be able to choose which bank, you would like to proceed and accept.

If you have any further questions, please do not hesitate to contact us further, or come visit us at our offices.

Once Pre-Qualified

You will need to complete
  • The Application Form
  • Signed & Completed Dea Consent Form
  • Signed & Completed Credit Check Consent Form
  • You will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.
Send it back to us with these
  • Clear ID/Passport CopyClear ID/Passport Copy.
  • Copy of Marriage Certificate (if married).
  • Proof of Current Address (no older than 3 months, and non PO Box).
  • Latest 3 Months Payslips (6 Months will be required if your income fluctuates). If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Latest 3 Months Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months will be required if your income fluctuates).
  • Copy of Lease Agreement (only if you get Rental Income)
  • Copy of your Degree (if applicable)
  • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
  • If Self-Employed all the Self-Employed documents will Apply.

To apply for a New Loan, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

NEED A FURTHER LOAN?

Once Pre-Qualified

You will need to Complete…

  • The Application Form
  • The Signed Last Page of the Application Form
  • Signed & Completed Dea Consent Form
  • Signed & Completed Credit Check Consent Form
  • Existing Nedbank relationship clients, will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.

Please let us know which Banks you hold accounts with. And Send it back to us with these…

  • Clear ID/Passport CopyClear ID/Passport Copy
  • Copy of Marriage Certificate (if married).
  • Proof of Current Address (no older than 3 months, and non PO Box).
  • Latest 3 Months Payslips (6 Months will be required if your income fluctuates). If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Latest 3 Months Stamped Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months will be required if your income fluctuates.
  • Copy of Lease Agreement (only if you get Rental Income)
  • Copy of your Degree
  • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
  • If Self-Employed all the Self-Employed documents will Apply.

To apply for a Further Loan on a Bonded or Un-Bonded Property, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

Information on how a further bond works

We will need to establish the realistic market value of the property, based on the most recent registered sales in the deeds office, for properties in the same area, with similar offering. Once we know what the value is, we need to check what the outstanding balance on your existing bond is. The banks will generally lend between 85% to 90% of the market value of the property. Effectively this means that you will be able to lend money against your property, as long as there is sufficient equity, without the need to present quotations for the intended renovations.

As long as your property holds sufficient equity as security for the further bond, and your affordability allows, you can technically use the funds available at your own discretion.

Once Pre-Qualified

You will need to Complete…

  • The Application Form
  • The Signed Last Page of the Application Form
  • Signed & Completed Dea Consent Form
  • Signed & Completed Credit Check Consent Form
  • Existing Nedbank relationship clients, will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.

Please let us know which Banks you hold accounts with. And Send it back to us with these…

  • Clear ID/Passport CopyClear ID/Passport Copy
  • Copy of Marriage Certificate (if married).
  • Proof of Current Address (no older than 3 months, and non PO Box).
  • Latest 3 Months Payslips (6 Months will be required if your income fluctuates). If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Latest 3 Months Stamped Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months will be required if your income fluctuates.
  • Copy of Lease Agreement (only if you get Rental Income)
  • Copy of your Degree
  • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
  • If Self-Employed all the Self-Employed documents will Apply.

To apply for a Further Loan on a Bonded or Un-Bonded Property, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

Information on how a further bond works

We will need to establish the realistic market value of the property, based on the most recent registered sales in the deeds office, for properties in the same area, with similar offering. Once we know what the value is, we need to check what the outstanding balance on your existing bond is. The banks will generally lend between 85% to 90% of the market value of the property. Effectively this means that you will be able to lend money against your property, as long as there is sufficient equity, without the need to present quotations for the intended renovations.

As long as your property holds sufficient equity as security for the further bond, and your affordability allows, you can technically use the funds available at your own discretion.

NEED A BUILDING LOAN?

Once Pre-Qualified

You will need to Complete…

  • The Application Form
  • The Signed Last Page of the Application Form
  • Signed & Completed Dea Consent Form
  • Signed & Completed Credit Check Consent Form
  • Existing Nedbank relationship clients, will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.

Please let us know which Banks you hold accounts with.

Send it back to us with these…

  • Clear ID/Passport CopyClear ID/Passport Copy
  • Copy of Marriage Certificate (if married).
  • Proof of Current Address (no older than 3 months, and non PO Box).
  • Latest 3 Months Payslips (6 Months will be required if your income fluctautes) If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Latest 3 Months Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months Bankstatements will be required if your income fluctuates).
  • Copy of Lease Agreement (only if you get Rental Income)
  • Copy of your Degree (if applicable)
  • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
  • If Self-Employed all the Self-Employed documents will Apply.

To apply for a Building Loan, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

Important Guidelines for Building Loans

It is very important to understand how a building loan works, as many people have some misconceptions:

  • Firstly you need to understand that if your builder advises that it is going to cost you R2,000,000 to build your new home and the bank makes a 90% offer of R1,800,000, the bank will keep the R1,800,000 on retention, until you have paid the R200,000 deposit at the attorneys, or alternatively add value to the vacant land to the value of R200,000 (meaning start with the foundation and slab), before any progress payments will be released to you.
  • You cannot use your deposit money towards the end of the project for finishes on the property.
    Discuss upfront with your builder, who will be funding the first portion of the work done, as the bank will not release any money, unless they are in a position to see progress made on the land. If the builder cannot fund it from his/her side, you will have to budget for that as well.
  • As the project makes progress, the bank will make around 4/5 progress payments, throughout the duration of the project.
    It is also important to bear in mind that as progress payments are drawn, your bond will increase every time and it is important to budget for the repayments of this loan, as you are required to service the interest on the bond, which is almost the same as a normal payment.
  • This becomes even more important, if you still have to pay your current accommodation elsewhere (lease agreement / bond), as it means that towards the end of the building project you will be required to pay almost a full bond payment, as well as your current lease/bond.
  • It is very important that you enrol the erf/project/land with the NHBRC before any work is done, else progress payments will not be released and the NHBRC could fine you with a late enrolment fee.

Vacant Land:

  • When buying vacant land, you have to prepare yourself for a 40% deposit, as the banks are very strict when it comes to undeveloped land.
  • The loan term could also be reduced to a 10 year loan term.
  • Only when you apply for a building loan from the start, will the banks be willing to increase their offering to between 80% and 100% loan, depending on the client’s credit score and the banks internal credit criteria.
You will need to complete
    • The Application Form
    • The Signed Last Page of the Application Form
    • Signed & Completed Dea Consent Form
    • Signed & Completed Credit Check Consent Form
    • Existing Nedbank relationship clients, will need to complete the Nedbank Declaration Form, Nedbank Coversheet & the Nedbank Commitment Letter.

    Please let us know which Banks you hold accounts with.

Send it back to us with these
    • Clear ID/Passport CopyClear ID/Passport Copy
    • Copy of Marriage Certificate (if married).
    • Proof of Current Address (no older than 3 months, and non PO Box).
    • Latest 3 Months Payslips (6 Months will be required if your income fluctautes) If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
    • Latest 3 Months Bank Statements (Non-Internet reflecting at least 3 salary deposits (6 Months Bankstatements will be required if your income fluctuates).
    • Copy of Lease Agreement (only if you get Rental Income)
    • Copy of your Degree (if applicable)
    • If employed for less than 3 months we will need a copy of your Employment Contract, signed by all relevant parties.
    • If Self-Employed all the Self-Employed documents will Apply.

    To apply for a Building Loan, simply complete our bond Pre-Qualification form and we will contact you, at your convenience to complete the process.

Important Guidelines for Building Loans

It is very important to understand how a building loan works, as many people have some misconceptions:

  • Firstly you need to understand that if your builder advises that it is going to cost you R2,000,000 to build your new home and the bank makes a 90% offer of R1,800,000, the bank will keep the R1,800,000 on retention, until you have paid the R200,000 deposit at the attorneys, or alternatively add value to the vacant land to the value of R200,000 (meaning start with the foundation and slab), before any progress payments will be released to you.
  • You cannot use your deposit money towards the end of the project for finishes on the property.
    Discuss upfront with your builder, who will be funding the first portion of the work done, as the bank will not release any money, unless they are in a position to see progress made on the land. If the builder cannot fund it from his/her side, you will have to budget for that as well.
  • As the project makes progress, the bank will make around 4/5 progress payments, throughout the duration of the project.
    It is also important to bear in mind that as progress payments are drawn, your bond will increase every time and it is important to budget for the repayments of this loan, as you are required to service the interest on the bond, which is almost the same as a normal payment.
  • This becomes even more important, if you still have to pay your current accommodation elsewhere (lease agreement / bond), as it means that towards the end of the building project you will be required to pay almost a full bond payment, as well as your current lease/bond.
  • It is very important that you enrol the erf/project/land with the NHBRC before any work is done, else progress payments will not be released and the NHBRC could fine you with a late enrolment fee.

Vacant Land:

  • When buying vacant land, you have to prepare yourself for a 40% deposit, as the banks are very strict when it comes to undeveloped land.
  • The loan term could also be reduced to a 10 year loan term.
  • Only when you apply for a building loan from the start, will the banks be willing to increase their offering to between 80% and 100% loan, depending on the client’s credit score and the banks internal credit criteria.
BEING MARRIED & BUYING PROPERTY?

DECIDING TO GET MARRIED?

In Community of Property

Traditionally most people get married “In Community of Property” (COP), which basically means that from the date of marriage, husband and wife would share everything 50/50. In the ideal world that would probably be the romantic thing to do, but the reality of being married COP, means that neither party will be able to buy residential property, without the written consent of the other party.That alone might not sound that problematic, but it is important to understand that when COP couples buy property together, you will not have the luxury of excluding either party. Even with the one parties income not being required for the bond, his/ her name would still have to appear on the Offer to Purchase and also on the Bond Application. The problem comes in when either party has incurred bad debt which resulted in his / her ITC profile to be jeopardised. This will affect the entire application negatively-when you suddenly realise that there is an account which your partner had not paid regularly. It is therefore very important for couples that are married COP, to ensure that both parties handle their various creditors responsibly.

What are the Alternatives?

Being married out of community of property also referred to being married with an Ante-Nuptial Contract (ANC), will give independence to both parties. The independence can be seen that they can act independently and not be liable for the debts of one another. As there is no community of debt, creditors cannot attach the assets of the other spouse. The parties are thus judicially equal but economically unequal. Each party may freely dispose of his/her assets and make a separate will. It is however important to understand that by being married out of community of property, you will not be entitled to your partner’s financial growth over the years, unless you make the accrual system applicable to your marriage.

Being married out of COP, the Accrual System

Once the parties decide to be married out of community of property, they can also have the accrual system made applicable to their marriage. The same principals which regulate the out of community of property marriage apply, but at the dissolution of the marriage either because of death or divorce, the spouse whose estate shows a smaller accrual has a claim against the other spouse for an amount equal to half of the difference between the accrual of the respective estates. In laymen’s terms it means that you will be entitled to 50% of the financial growth your spouse has shown since the day you got married.

The accrual system is sometimes referred to as a form of deferred community of property; however the parties are still independent and not liable for each other’s debts. The net value of a spouse’s estate is to be determined, at commencement and again at the end of the marriage, in order to measure the total growth.

Being married ANC with the accrual system applying, both parties will be able to buy property independently and should one of the parties have a history of poor payment profile with creditors, it will be possible to exclude that party from the transaction, should affordability allow.

Firstly get Pre-Qualified

You will need to Complete…

  • The Pre-Qualification Form (please include all incomes & expenses, so that we can be as accurate as possible)

And Send it back to us with these…

  • Clear ID/Passport Copy
  • Copy of Marriage Certificate (if married).
  • Latest 3 Months Payslips (If you earn commission or overtime we will need the latest 6 months. If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
  • Copy of Lease Agreement (only if you get Rental Income)

Please let us know which Banks you hold accounts with.

Once Pre-Qualified

We will then request the necessary Bond Application documents applicable to your Home Loan Application.

  • New Home Loan
  • Further Loan
  • Building Loan

DECIDING TO GET MARRIED?

In Community of Property

Traditionally most people get married “In Community of Property” (COP), which basically means that from the date of marriage, husband and wife would share everything 50/50. In the ideal world that would probably be the romantic thing to do, but the reality of being married COP, means that neither party will be able to buy residential property, without the written consent of the other party.That alone might not sound that problematic, but it is important to understand that when COP couples buy property together, you will not have the luxury of excluding either party. Even with the one parties income not being required for the bond, his/ her name would still have to appear on the Offer to Purchase and also on the Bond Application. The problem comes in when either party has incurred bad debt which resulted in his / her ITC profile to be jeopardised. This will affect the entire application negatively-when you suddenly realise that there is an account which your partner had not paid regularly. It is therefore very important for couples that are married COP, to ensure that both parties handle their various creditors responsibly.

What are the Alternatives?

Being married out of community of property also referred to being married with an Ante-Nuptial Contract (ANC), will give independence to both parties. The independence can be seen that they can act independently and not be liable for the debts of one another. As there is no community of debt, creditors cannot attach the assets of the other spouse. The parties are thus judicially equal but economically unequal. Each party may freely dispose of his/her assets and make a separate will. It is however important to understand that by being married out of community of property, you will not be entitled to your partner’s financial growth over the years, unless you make the accrual system applicable to your marriage.

Being married out of COP, the Accrual System

Once the parties decide to be married out of community of property, they can also have the accrual system made applicable to their marriage. The same principals which regulate the out of community of property marriage apply, but at the dissolution of the marriage either because of death or divorce, the spouse whose estate shows a smaller accrual has a claim against the other spouse for an amount equal to half of the difference between the accrual of the respective estates. In laymen’s terms it means that you will be entitled to 50% of the financial growth your spouse has shown since the day you got married.

The accrual system is sometimes referred to as a form of deferred community of property; however the parties are still independent and not liable for each other’s debts. The net value of a spouse’s estate is to be determined, at commencement and again at the end of the marriage, in order to measure the total growth.

Being married ANC with the accrual system applying, both parties will be able to buy property independently and should one of the parties have a history of poor payment profile with creditors, it will be possible to exclude that party from the transaction, should affordability allow.

Firstly get Pre-Qualified

You will need to complete
  • The Pre-Qualification Form (please include all incomes & expenses, so that we can be as accurate as possible).
Send it back to us with these
    • Clear ID/Passport Copy
    • Copy of Marriage Certificate (if married).
    • Latest 3 Months Payslips (If you earn commission or overtime we will need the latest 6 months. If you get paid weekly/biweekly, we will need a full 6 months worth of payslips 2 weeks x6 months, or 4 weeks x6 months).
    • Copy of Lease Agreement (only if you get Rental Income)

    Please let us know which Banks you hold accounts with.

Once Pre-qualified

We will then request the necessary Bond Application documents applicable to your Home Loan Application.

  • New Home Loan
  • Further Loan
  • Building Loan

Email

info@paynelessbonds.co.za

Phone

+(27) 87 151 4712

+(27) 11 662 2396

+(27) 83 707 1684

Address

1182 KATLAGTER STREET
FEATHERBROOKE ESTATE
1746 GAUTENG, SOUTH AFRICA

Send Us an Email