Short-term finance when you need it most

Business, Personal & Property Bridging Loans


Use your unbonded property as security for a loan

Up To 60% Of Your Property Value In Cash

Loans against property, often referred to as equity release, present a robust financial solution for South Africans. This type of loan involves using your unbonded residential, commercial, or industrial property as collateral. With a minimum property value requirement of R1 million, these loans are ideal for unlocking the value tied up in your property without selling it.

An equity release could help you with:

Home improvements or renovations

Funding education for themselves or family members

Consolidating debts, especially high-interest debts

Investing in business opportunities or expansion

Covering major life expenses like weddings or medical bills

Supplementing retirement income

What is an Equity Release?

Equity release refers to the process of converting the equity in your property into accessible cash. This option is typically sought by property owners who have significant equity, meaning the market value of their property greatly exceeds any outstanding mortgage balance. It’s a strategic method to access funds without affecting property ownership.


Benefits of Loans Against Property

The benefits are numerous, including:

  • access to large sums of money
  • potentially lower interest rates compared to unsecured loans
  • the ability to retain property ownership
  • a way to capitalize on any increase in your property’s value over time.

Application Criteria

To apply, you must own a property in South Africa worth at least R1 million, with little to no existing home loan.

Lenders will assess your creditworthiness, income stability, and the property’s value. Clear legal ownership and a good credit history are pivotal for approval.


Costs vary depending on the loan amount, property value, and the lender’s terms. Interest rates may be more favorable compared to unsecured loans, but it’s important to consider additional fees like valuation and legal costs.

Loan Terms & Cost Schedule

Owners can release up to 60% of their property’s free equity or 30% in vacant land by registering a first or covering mortgage bond. Equity is calculated as property value minus any outstanding bond; for bond-free properties, it’s based on the lender’s valuation. Current market conditions typically allow for a maximum of 50% equity release, provided there’s little to no existing bond.

For a property valued at R2 million with a R200,000 bond, the equity is R1,800,000, with a maximum possible loan of R900,000, depending on the repayment security.

Approval in Principle usually takes up to 5 working days, subject to documentation availability.

Conditions include a minimum loan size of R1 million, interest rates of 2% to 4.5% monthly, a one-time professional fee of 2%-5%, options for early settlement without penalties, and preferred loan durations of 3-9 months, extendable to 24 months.

Frequently Asked Questions

How does a loan against property work?

For security on loans, a first bond over the property is necessary, with second bonds not accepted. The current bond is settled through the loan, which is to be repaid by profits from proposed transactions. Property valuation is conducted by the credit provider, and clients may submit their own for initial assessment.

Funds usage is at the client’s discretion, with a repayment agreement for a future date, ideally between 3 to 9 months. Monthly interest payments are required. Credit providers might ask for additional security, including directorial resignations, subordinating company loan accounts, and pledging company shares. These are safety measures, rarely enforced, and are a last resort. Loan repayment assurance is crucial, focusing on the ability to settle the loan rather than the security provided.

What documents are required to apply?

To apply for a loan against property, first, sign a mandate and fee agreement. Provide the entity’s name, registration documents, office addresses, tax clearance, VAT number, recent financial statements, director/shareholder IDs, surety details, recent bank statements, a solvency certificate, property title, independent valuation, latest rates account, and a detailed exit strategy. Post assessment, an Approval In Principle or decline is issued. Fulfillment of all conditions leads to fund release, typically within 10 days of document submission. Complete and prompt documentation is crucial for a swift process.

Can I rent out my property during the loan term?

Whether you can rent out your property while it has a loan against it depends on the terms of your loan agreement. Most lenders allow this, but it’s important to check your contract for any restrictions or requirements you might need to fulfill. Some lenders may require notification or approval before you can rent out the property, so it’s always best to consult with your lender to understand any specific conditions related to renting.

What happens if I cannot repay the loan?

If you can’t repay a loan against property, the lender may initiate legal proceedings to recover the owed amount. This often involves selling the property used as collateral. The sale proceeds go towards settling the loan, with any excess funds returned to you. Defaulting on the loan can also negatively impact your credit score. It’s crucial to communicate with your lender if you anticipate difficulties in repayment, as they may offer solutions like restructuring the loan.

I co-own the property, can I still apply for an equity release?

Yes, you can still apply for an equity release if you co-own the property. However, all co-owners typically need to agree to the loan and may be required to sign the loan documents. The lender will assess the application based on the combined financial profiles and the equity in the property. It’s important to discuss this with your co-owner and consult with the lender for specific requirements and conditions.



This form applies to the following bridging loan categories:

Loans Against Property

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