18/06/2026
π‘ COMMON HOME LOAN TERMINOLOGY EVERY SOUTH AFRICAN BUYER SHOULD KNOW π‘
Buying a property can feel like learning a new language! Here are some of the most common home loan terms you'll encounter during your property journey:
πΉ Pre-Qualification
An assessment of your affordability based on your income, expenses and credit profile.
It gives you an indication of how much you may qualify to borrow.
πΉ Home Loan Approval
The bank's confirmation that they are willing to finance your property purchase, subject to certain conditions.
πΉ Deposit
The amount you contribute upfront towards the purchase price. A larger deposit can improve your chances of approval and may result in a better interest rate.
πΉ Interest Rate
The percentage charged by the bank on the money borrowed. This can be linked to the prime lending rate.
πΉ Prime Rate
The benchmark interest rate used by South African banks. Your home loan rate is often quoted as Prime, Prime Plus, or Prime Minus a percentage.
πΉ Bond Registration
The legal process of registering the home loan against the property in the Deeds Office.
πΉ Transfer Costs
Costs associated with transferring ownership of the property into your name, including attorney fees and Deeds Office charges.
πΉ Loan-to-Value (LTV)
The percentage of the property's value that the bank is willing to finance. For example, a 100% loan means no deposit is required.
πΉ Credit Score
A measure of your creditworthiness based on your financial history. A healthy credit profile improves your financing options.
πΉ Repayment Term
The period over which the home loan is repaid, typically up to 20 or 30 years.
π‘ Tip: Understanding these terms before making an offer can save you time, money, and unnecessary stress.
At MiBonds, we help simplify the home loan process, secure competitive finance options, and guide you every step of the way.
π Contact MiBonds today and let us help turn your property dreams into reality.