# How much deposit is needed to buy a house.



## Saartjie (Mar 1, 2010)

I know this is probably a very general question to ask or rather hard to answer. We are looking at buying a property soon in one of the suburbs to Joburg. Have not even approached a bank yet but wanted to see if people could give me a general idea as to how much deposit the bank requires you to put down. We are looking at houses in the price range of about R1.5 Million. I have heard that the bank can ask you to put down about 30% of the purchase price which seems rather a lot. We both work and have pretty decent incomes for SA standards (I think). 

Does anyone have any recent experience in this regard. Can anyone recommend a bank to approach?

Any information would be greatly appreciated.


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## travelling-man (Jun 17, 2011)

Try ABSA or FNB (First National Bank) - You'll find them both with a Google search.


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## Johanna (Apr 13, 2009)

Are you a SA citizen? Banks usually do not give more than 80% of the value. The seller requests the deposit.


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## travelling-man (Jun 17, 2011)

Johanna said:


> Are you a SA citizen? Banks usually do not give more than 80% of the value. The seller requests the deposit.


Actually, that's a very good point. You'll probably find it extremely difficult, if not impossible to get a bond/mortgage unless you have RSA residency and an ID number.

If you don't have residency but hope to stay on long term, you might also like to investigate the residency situation because they amended the act last year and some people who have been here for years on visas of various sorts are being forced to sell up and move out.

I've been running a business here for 30+ years and living here for over 10 years and we're being forced out later this year for that very reason...... So if you want to buy a house on a secure estate that's just 15 minutes from the KNP, feel free to send me a PM!  LOL!


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## EthenGroom (Feb 1, 2011)

Hi there 

It depends on how much deposit the seller requests and also on how much the bank is willing to finance you. I would suggest that you speak to both the sellers and the bank. Negotiate the best deal that you can afford.

Good luck!


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## Saartjie (Mar 1, 2010)

Johanna said:


> Are you a SA citizen? Banks usually do not give more than 80% of the value. The seller requests the deposit.


80% of the value should work I guess. I was kind of hoping that the fact that my husband is South African a mortgage would not be a problem. We already own two houses together (that we rent out) that we bought here about 5 years ago and my nationality was not a problem then and I had no SA residence status whatsoever. Saying that I know the situation has changed with the Credit Act and recession so it might not be possible for us now. Not the end of the world at all, but it would be nice to own a house rather than rent.


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## Johanna (Apr 13, 2009)

Saartjie said:


> 80% of the value should work I guess. I was kind of hoping that the fact that my husband is South African a mortgage would not be a problem. We already own two houses together (that we rent out) that we bought here about 5 years ago and my nationality was not a problem then and I had no SA residence status whatsoever. Saying that I know the situation has changed with the Credit Act and recession so it might not be possible for us now. Not the end of the world at all, but it would be nice to own a house rather than rent.


I suppose the house will be in your husband's name. Spoke to my son, who is a solicitor, he needs to show proof of work or income.


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## Saartjie (Mar 1, 2010)

Johanna said:


> I suppose the house will be in your husband's name. Spoke to my son, who is a solicitor, he needs to show proof of work or income.


Thanks for your advise. I guess the best way is to see the bank and find out what they require. I used to be a property solicitor myself in the UK in my previous life but things are different here so wasn't too sure.


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## Stevan (Jun 30, 2009)

the more you can put down as a deposit the better the rate you can negotiate with the bank.


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## Johanna (Apr 13, 2009)

Stevan said:


> the more you can put down as a deposit the better the rate you can negotiate with the bank.


Just remember, the deposit is not paid to the bank!

It only means you will need a smaller mortgage!


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## Stevan (Jun 30, 2009)

Johanna said:


> Just remember, the deposit is not paid to the bank!
> 
> It only means you will need a smaller mortgage!


yes but the bank takes less of the risk and i found will negotiate on rate,


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## Native Texan (Apr 29, 2011)

A foriegner must put down 50% of the purchase price in order to get a mortgage loan but if your husband is getting the loan soley in his name, he should be able to get a loan for 80 or 90% of the purchase price. I don't know what effect putting both of your names on the paperwork would have if you are not a SA citizen. Most banks will give better rates if you put down a larger deposit and for sure your monthly payments will be less the smaller your loan is. We found that the bank was more than willing to give the loan as long as we were able to show proof of income and put the correct amount down for the house.


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## Saartjie (Mar 1, 2010)

Native Texan said:


> A foriegner must put down 50% of the purchase price in order to get a mortgage loan but if your husband is getting the loan soley in his name, he should be able to get a loan for 80 or 90% of the purchase price. I don't know what effect putting both of your names on the paperwork would have if you are not a SA citizen. Most banks will give better rates if you put down a larger deposit and for sure your monthly payments will be less the smaller your loan is. We found that the bank was more than willing to give the loan as long as we were able to show proof of income and put the correct amount down for the house.


I guess my husband can buy the place in his name only. We can then have a Trust Deed drawn up to state that I make equal contributions towards the repayments etc and make sure that we include the house in our wills. If I am not going to be the joint owner of the property, I feel that I must ensure that I am protected. Even though I want to be with my husband forever, the lawyer in me must look at the worst case scenario and ensure that my back is covered. I had hoped that we could get away with a 20% deposit so I guess we need to go and speak to the bank and see what they say. Just tired of renting and paying someone else's mortgage.


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