# Home Loan Policies for Permit Holders



## IamT (Aug 4, 2014)

Hi All,

I am on a Quota Work Permit and am thinking of taking out a Mortgage Bond for the purchase of a residential home.

I am shopping around the banks and it seems that it is a BIG issue for banks to offer home finance to Temporary Residence Permit holders.

I have been to different banks-Nedbank say they completely do not give TRP holders Home finance...even though I have a friend who is on a TRP who got the bond, Standard bank say they want 50% deposit for them to consider...

I have also noticed that you get different responses from different consultants of same banks so there is confusion all round.

Has any of you been granted home loans while of Temporary Residence Permits?
If so, what % deposit did they want from you?


I got all the credit rating stuff in good order...am on my second Vehicle Finance deal, got a maintained credit card, Edgars account, cellphone contract, personal loan all active over 4 years.

Should I wait for me to get a PR to get a home loan 

Regards


----------



## mrmo (Oct 28, 2014)

IamT said:


> Hi All,
> 
> I am on a Quota Work Permit and am thinking of taking out a Mortgage Bond for the purchase of a residential home.
> 
> ...


Hi IamT, been in your shoes for years. Home loans rules are beyond the banks. The Reserve Bank insist that for every R1.00 loaned non-permanent-resisident for home loans the buyer should provide proof of external source of fund for the other R1.00. The best you can do is to wait, apply for PR, apply for ID and the day you get your ID number issued apply for a bond. Standard Bank gave me 90% loan-to-value last year Oct. I havent received by ID yet but what else can one do. I had to wait close to 7 years for the dream to come true.


----------



## Skilled (May 10, 2011)

If I have an ID number but not yet the ID-Book will they accept my home loan application?

What do I need to take to Standard bank.


----------



## IamT (Aug 4, 2014)

Hi MrMo

Thanks for the reply...kinda suspected that there was some law stating the 50% rule.I understand why they do that though.

I will have to start the excruciating process of applying for a PR now...then another wait for an ID number-all this could take years!

OR, I could play and win the lotto and forget about the PR process ;-)

The Struggle Continues...


----------



## mrmo (Oct 28, 2014)

Skilled said:


> If I have an ID number but not yet the ID-Book will they accept my home loan application?
> 
> What do I need to take to Standard bank.


Hi Skilled. I have been a client of Standard bank for more than 6years. A good credit record with them by how I conducted my cheque account and previous short term loan did help so they told me. 

Was already house hunting before ID number was issued. Once the ID was issued I signed offer to purchase with seller of one of the house on my wishlist. Submitted my bond application through a bond originator. 

This is what I submitted:
Signed offer to purchase
Copy of my Home Affairs ID Acknowledgement slip (which had my ID number on now)
Copy of PR certificate, 
Copy Passport (back page + a small PR sticker- I m told they dont put these anymore) 
Latest SARS Income Tax certificate, 
Latest payslip, 
Proof of Address 
Expenses breakdown in the bond originator's template, 

FNB & ABSA gave me a big NO!!

Standard Bank offered 75%

I accepted the 75% quote and went to the attorney appointed by the bank and asked talked to them. They wrote a motivation letter for me to the bank that I would update to ID number as soon as ID is issued. Also attached an Power of Attorney proxying Standard Bank to check directly with Home Affairs on ID application status.

Then 10 days later bond was re-granted at 90%.


----------



## IamT (Aug 4, 2014)

Good For you and well done!!!!

I have resigned myself to use the time I apply for and wait for the PR to pay off as much of my debt I have while saving for the deposit and stuff...at least in my mind I can convince myself that I have already started to pay for the 'house'.


----------

