π‘ How to Get Pre-Approved for a Home Loan in South Africa
1️⃣ What is Home Loan Pre-Approval?
Pre-approval (also called bond prequalification) is when a bank or bond originator checks your financial situation to estimate how much you can afford to borrow.
It’s like a financial “green light” — it shows sellers and agents (like Lake Properties) that you’re a serious buyer who can actually afford a property.
2️⃣ Documents You’ll Need
When you apply for pre-approval, banks or bond originators (like ooba, BetterBond, or your own bank) will ask for:
✅ Personal Details
South African ID (or passport if not a citizen)
Proof of residence (e.g., utility bill or lease)
✅ Income & Employment Proof
Latest 3 months’ payslips (if employed)
Latest 6 months’ bank statements (personal account)
If self-employed:
Latest 2 years’ financial statements
IT34/ITSA from SARS (tax assessment)
6 to 12 months’ business bank statements
✅ Financial Obligations
List of current debts (car loans, credit cards, personal loans, etc.)
Monthly expenses overview (e.g., rent, insurance, school fees)
✅ Deposit Proof (if applicable)
If you plan to put down a deposit (e.g. 10–20%), have proof of available funds — bank or investment account statement.
3️⃣ How the Process Works
Here’s how it usually goes step-by-step π
1. Apply for Pre-Approval
Submit your documents to your bank or a bond originator (they can compare multiple banks for you).
2. Affordability Check
They’ll assess your income, expenses, and credit score to calculate how much bond you qualify for.
3. Receive Your Pre-Approval Certificate
You’ll get a certificate stating the maximum bond amount you can qualify for and an indicative interest rate.
4. Use This When House Hunting
This helps narrow your search — for example, if you’re pre-approved for R2 million, you’ll look for homes in that price range.
4️⃣ Does Pre-Approval Mean You’re Guaranteed a Loan?
Not yet — pre-approval is conditional.
It shows what you could qualify for, based on your financial profile today.
When you find a property you want to buy, the bank will still:
Do a full bond application (which is faster since they already have your info)
Value the property (they must confirm it’s worth the price you’re paying)
Run final checks on your documents (to make sure nothing has changed)
✅ If your financial situation is stable, you don’t have to start the pre-approval all over again — but the bank will reconfirm the details before granting the final loan
⏳ How Long Pre-Approval Lasts
Usually 3 months (90 days).
After that, you can easily renew it by updating your documents if you haven’t found a home yet.
π‘ Lake Properties Pro-Tip
> Get your pre-approval before you start viewing homes — it puts you in a stronger negotiating position and shows sellers you’re ready to move quickly.
Also, avoid taking new debt or changing jobs during this stage — it could affect your affordability.
Call to Action
Ready to explore the best investment opportunities in Cape Town?
Contact Lake Properties today and let our experts guide you to your ideal property.
If you know of anyone who is thinking of selling or buying property,please call me
Russell
Lake Properties
ww.lakeproperties.co.za
info@lakeproperties.co.za
083 624 7129
