Question 1

What is a bond originator?

Accepted Answer

A bond originator is a company or individual that acts as an intermediary between you (the home loan applicant) and multiple banks. Instead of you applying to one bank at a time, a bond originator submits your home loan application to multiple banks simultaneously. The originator then presents you with all the offers so you can choose the best rate and terms. ooba is South Africa's largest bond originator. The service is completely free to you: originators earn a commission from the bank that successfully approves your bond.

Question 2

Is using a bond originator really free?

Accepted Answer

Yes, completely. When you use ooba or any bond originator, you pay absolutely nothing for the service. The originator earns a commission from the bank that successfully approves your home loan. This commission is built into the bank's cost structure, not added onto your loan. You only pay the standard costs associated with any home purchase: bond registration costs and transfer costs (conveyancing fees and transfer duty where applicable).

Question 3

How much can I borrow for a home loan in South Africa?

Accepted Answer

The amount you can borrow depends on your gross monthly income, existing debts, and credit score. As a general guide, banks allow your total monthly debt repayments (including the new bond) to be no more than 30–40% of your gross monthly income. For example, someone earning R30,000 per month might qualify for a bond of approximately R900,000–R1,200,000, depending on the interest rate, existing debts, and credit profile. The best way to know exactly how much you qualify for is to do a free pre-qualification assessment with us.

Question 4

What is a pre-qualification and why do I need one?

Accepted Answer

A pre-qualification (or pre-approval) is an assessment done before you make an offer on a property. We analyse your income, existing debts, and credit profile to give you a realistic figure of what the banks are likely to approve. Pre-qualification is important because: it tells you exactly what budget to search within; it gives you credibility with estate agents and sellers; it speeds up the process when you do find a property; and it prevents the disappointment of falling in love with a home you can't afford. Pre-qualification through ooba is completely free.

Question 5

Do I need a deposit to get a home loan?

Accepted Answer

Not necessarily. 100% home loans (no deposit required) are available in South Africa, though they're harder to obtain and usually require a strong credit score and good income. Having a deposit significantly improves your chances of approval and almost always results in a better interest rate. A 10% deposit is considered a meaningful improvement; a 20% deposit typically secures the best rates. If you can save a deposit, it's worth doing: even a 0.25% rate improvement saves tens of thousands over the life of a 20-year bond.

Question 6

What credit score do I need for a home loan?

Accepted Answer

There's no single universal minimum: each bank sets its own thresholds. As a general guide: below 600 is very difficult and usually requires credit repair first; 600–649 is challenging but possible with a good deposit and strong income; 650–699 gives you a reasonable chance, though rates will be higher; 700+ gives you good approval prospects with competitive rates; and 750+ qualifies you for the best rates and terms. If your score is lower than desired, we can advise on practical steps to improve it before applying.

Question 7

What documents do I need for a home loan application?

Accepted Answer

For employed applicants, you'll need: a South African ID document or passport; last 3 months' payslips; last 3 months' bank statements; a letter of employment confirming your salary and employment status; and a signed offer to purchase for the specific property. For self-employed applicants, you'll need: a South African ID; last 2 years' SARS income tax assessments; last 2 years' business financial statements (audited or reviewed); last 6 months' personal and business bank statements; and proof of business registration.

Question 8

How long does the home loan process take?

Accepted Answer

When you apply through ooba, you can typically expect initial bank responses within 24–48 hours of submitting a complete application. Full formal approval usually takes 3–5 business days. If the bank requires additional information or a property valuation, this can extend the timeline. The entire process from application to registration can take 4–8 weeks. Having all your documents ready and complete is the biggest factor in speeding up the process.

Question 9

Can I get a home loan if I'm self-employed?

Accepted Answer

Yes, self-employed individuals can get home loans in South Africa, but the requirements are different from salaried employees. Banks typically require at least 2 years of continuous self-employment, 2 years' SARS tax assessments, audited or reviewed financial statements, 6 months' personal and business bank statements, and consistent income demonstrated over the 2-year period. Some banks are more flexible with self-employed applicants than others, which is one reason why using ooba (which has access to multiple banks) is particularly beneficial for self-employed applicants.

Question 10

What is the difference between prime rate and the repo rate?

Accepted Answer

The repo rate (repurchase rate) is the rate at which the South African Reserve Bank (SARB) lends money to commercial banks. The prime rate is what banks charge their most creditworthy customers: typically set at repo rate plus 3.5%. Most home loans in South Africa are priced at prime plus or minus a margin. A 'prime minus' rate is excellent and indicates a low-risk borrower. The margin you receive depends on your credit score, income, deposit size, and the bank's appetite for your specific loan.

Question 11

What is bond registration and transfer duty?

Accepted Answer

Bond registration is the legal process of registering your home loan (bond) against the property title. It's handled by a bond attorney appointed by the bank. Registration costs vary based on the bond amount and are set by regulation. Transfer duty is a government tax on the transfer of property. In South Africa (2026), properties sold for less than R1,100,000 are exempt from transfer duty. Above that threshold, transfer duty applies on a sliding scale. These costs are separate from and in addition to your deposit (if any).

Question 12

What happens if my home loan is declined?

Accepted Answer

Being declined by one bank doesn't mean you won't be approved elsewhere. Different banks use different credit models and have different risk appetites. If you're declined, we'll: review the reason for decline; identify which other banks may have different criteria; advise on practical steps to strengthen your application (such as paying down debt or improving your credit score); and resubmit to more suitable lenders. Many clients who were initially declined have gone on to get approved through ooba's multi-bank approach.

Question 13

Can I use ooba if I've already found a property?

Accepted Answer

Absolutely. While we recommend getting pre-qualified before you search (so you know your budget), you can also approach us once you have a signed offer to purchase. We'll submit your application immediately and aim to get you formal approval as quickly as possible. If you're working to a deadline (as specified in your offer to purchase), let us know and we'll prioritise your application.

Question 14

How is ooba Bloemfontein different from using ooba online?

Accepted Answer

Our consultants in Bloemfontein provide personalised, face-to-face service for people in Bloemfontein and the surrounding Free State area. While ooba's online platform is excellent for straightforward applications, complex situations (self-employed applicants, those with credit challenges, investment properties, or unusual income structures) often benefit enormously from working with an experienced local consultant who knows the banks personally and can advocate on your behalf.

Question 15

What is ooba's success rate for home loan approvals?

Accepted Answer

ooba consistently achieves significantly higher approval rates than applicants who go directly to a single bank. This is because we submit to multiple banks (increasing the chances at least one will approve), we know each bank's criteria and match applicants to suitable lenders, and we prepare applications professionally so they present your case in the strongest light. We recommend contacting us for current statistics and to discuss your specific situation.

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