# Mortgage or bond



## NJB55 (Mar 20, 2014)

Hi all

I have a question regarding the purchase of a property in good old Johannesburg. We are returning from the UK with some equity from our recent sale of our home. We would like to put this amount down as a largish deposit on a family in Jnb. We are both SA citizens. If my deposit is 50% on a R2 million purchase how do I go about securing the other R1 million? If I was employed what multiple of my salary would the bank lend me? Also there is a chance I will be self employed and what are the rules regarding self employed buyers?

Thanks


----------



## Jem62 (Jul 25, 2012)

For most banks a 50% deposit would be sufficient security even if you were self-employed. However, unlike the UK, SA banks calculate what they would lend you on the basis of affordability i.e. your income and outgoings. They are very sophisticated and astute and gather information on applicants expenditure from all kinds of sources, it is therefore best to be quite open and honest. A customer with 50% deposit is no risk to the bank and you will have no problem getting a bond.


----------



## MissGlobal (Aug 4, 2012)

I inquired about this when we were hunting for a house - and Absa basically told us this. 

We'll have to put down 40 - 50 % . Since we are self employed, we'd need a chartered accountant to basically verify that were were financially sound - maybe going back a few years in records. However, if we could provide that - there'd be no problem with the loan.


----------

