LOANS AGAINST PROPERTY

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Unlock your property’s value with a loan against property

Tired of feeling financially restricted? Unlock the hidden value in your fully paid-off property with a loan against property. This type of loan is applicable to residential, commercial, industrial and agricultural properties. As long as you hold the title deed and there is no bond against the property, you’re eligible!

Here’s how it works:

  • You use your property as security for a loan. You borrow money while still enjoying the comfort of your own home.
  • You keep living in your home. No need to move or disrupt your life.
  • You get access to a significant amount of cash. Perfect for those big and unexpected life moments.

What can you use the loan for?:

Home Renovations

Finally, that kitchen or bathroom remodel you’ve been dreaming of!

Debt Consolidation

Simplify your finances by combining high-interest debts into one manageable loan.

Travel

Create unforgettable memories with a dream family holiday.

Business Ventures

Fuel your entrepreneurial spirit and turn your ideas into reality.

School/University Fees

Invest in your future or that of your loved ones with funding for education.

What You Need To Know

Eligibility

  • Property Value: Your property must be valued at over R1.5 million.
  • Credit History: A good credit history will strengthen your application.
  • Employment Status: Stable employment is generally required.
  • Property Status: Bond-free, owner holds title deed

Loan Terms

  • Loan-to-Value (LTV) Ratios: The amount you can borrow will depend on the value of your property.
  • Maximum Loan: 50% of open market value
  • Interest Rate: 2.8 – 4% per month
  • Minimum Loan Amount: R1 million
Costs

Property Value: R 1 000 000
Loan Granted: R 400 000
Bond Reg Costs: R 12 000
Attorney Fees: R 8 000
Initiation Fee: R 12 000

Funds Available: R 368 000 ( to Client)

Interest Rate:  2.8% – 4% per month

Once-off Costs: 3% fee

Term: 6 – 12 months 

Subject to lenders Terms and Conditions at time of quote

Benefits

  • Access to Significant Funds: Borrow substantial amounts of money, often much larger than with traditional personal loans.
  • Lower Interest Rates: Typically have lower interest rates compared to unsecured loans due to the lower risk for lenders.
  • Flexible Repayment Terms: Enjoy longer repayment periods, making monthly installments more manageable.
  • Maintain Home Ownership: Continue living in your home while accessing the equity within it.

Frequently Asked Questions

Can I take a loan against my property?

Yes, you can generally take a loan against your property if:

  • You own the property outright: You must have full ownership of the property, meaning it is fully paid off.
  • Your property has significant equity: The property’s market value should substantially exceed any outstanding debts against it.
  • You meet the lender’s creditworthiness criteria: This typically includes a good credit history, stable income, and the ability to demonstrate you can repay the loan.
Can I use my house as collateral for a personal loan in South Africa?

Yes, you can use your house as collateral for a personal loan in South Africa. This type of loan is commonly known as a home equity loan or a secured personal loan.

Here’s how it works:

  • You pledge your property as security: You agree that the lender can seize your property if you fail to repay the loan.
  • Lower Interest Rates: Due to the reduced risk for the lender, you may qualify for lower interest rates compared to unsecured personal loans.
  • Higher Loan Amounts: You can typically borrow larger amounts than with unsecured loans. For example, the minimum amount for this type of loan is R1 million.
Will I lose my home if I can't repay the loan?

No. You retain ownership of your property. However, in case of default, the lender may have the right to sell your property to recover the loan amount.

How long does it take to receive the loan funds?

Once approved, loan funds are typically disbursed within a few business days.

Can I repay the loan early?

Yes, early repayments are usually permitted without penalty.

APPLY FOR AN EQUITY RELEASE LOAN

This form applies to the following bridging loan categories:

Equity Release

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