Affordability
The bank works out what's left of your income after tax, your living expenses and your other debt. A common starting point is that the bond repayment shouldn't be more than 30% of your gross income, but the full assessment goes further.
Your credit record
How you've handled credit before matters as much as what you earn. Late payments, judgments and accounts in arrears count against you. ooba, a bond originator, says most banks want a score of at least 610.
Your income
Permanent salaried income is the easiest to assess. Contract and self-employed income can still qualify, with more documents: six months of bank statements and two years of financials for the self-employed.
The property
The bank values the home before it lends. If it values the home lower than the price, it may lend less than you asked for.
How to improve your chances
- Pay every account on time for a few months before you apply
- Close store cards you don't use and pay down small debts
- Don't take on new credit while you're applying
- Save a deposit if you can. It can also get you a better rate
- Apply with a partner if you're buying together
- Apply to several banks. A no from one isn't a no from all of them
Questions people ask
Why was my home loan declined?
Usually affordability, the credit record, or the bank valuing the property lower than the price. Ask the bank which one; a consultant can help you decide whether to try another bank or fix the problem first.
Where this comes from
- Old Mutual: home loans (the 30% guideline) (read 11 Oct 2026)
- ooba: pre-approval (credit score guidance) (read 11 Oct 2026)
- Standard Bank: home loan document checklist (linked 11 Oct 2026)
Checked October 2026.