Home Loans
The 2008 Global Financial Crisis exposed critical weaknesses in the global banking system. Banks around the world—including some of the largest—were undercapitalized, over-leveraged, and heavily reliant on short-term funding. When property markets collapsed and mortgage-backed securities went sour, these weaknesses triggered a domino effect of financial failures.
To restore confidence, ensure financial stability, and protect economies from future shocks, the Basel Committee on Banking Supervision introduced Basel III, an internationally agreed set of banking regulations.
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The Mortgage Origination Council of South Africa (MORCSA) serves as a pivotal industry body representing mortgage originators—professionals who facilitate home loan applications between prospective homeowners and financial institutions. Established by leading origination firms such as Ooba, BetterLife Group, and Multi Net Real Estate, MORCSA advocates for industry standards, consumer protection, and regulatory clarity in South Africa’s home financing sector.
n South Africa, it’s not uncommon to face financial shortfalls before payday. For many, the quick fix seems to be a temporary loan — fast cash with little paperwork. But what looks like a lifeline can actually turn into a long-term financial anchor, especially if you’re dreaming of buying a home.
Here’s why temp loans can be far more damaging than helpful — and why using your overdraft facility (if you have one) might be a smarter move.
In South Africa, your credit profile is one of the most important tools lenders use to assess your ability to manage debt. But have you ever wondered how your credit information actually gets to the credit bureaus — and why sometimes, not all the bureaus have the same information?
Buying a home in South Africa is one of the most significant financial decisions many people make. Whether you’re a first-time buyer or a seasoned homeowner, your mortgage (also known locally as a home loan) is likely to be your largest long-term debt. Understanding how mortgage interest works — and how to pay less of it — can help you save hundreds of thousands of rand over time.
When most South Africans apply for a home loan, they're told the basics: improve your credit score, keep your debt-to-income ratio low, and ensure you can afford the repayments. But what happens behind the scenes once your application hits a bank’s credit risk engine is far more complex — and it's grounded in advanced statistical analysis, predictive modeling, and geographic risk profiling.
This article explores how banks in South Africa assess home loan applications through a lens of statistical risk mitigation, going beyond the surface-level criteria and into the data-driven processes used to manage exposure to default.
It happens far too often: a hopeful homebuyer applies for a bond, only to be told that their application was declined—without a proper explanation. Many people assume that’s the end of the road, and they walk away discouraged, confused, and unsure of what went wrong.
But here’s the truth: You have the right to know why your application was declined. In fact, South African law is very clear on this.
Wondering if you can use Airbnb income in your home loan affordability assessment? Maybe, it absolutely depends on the bank’s requirements and the paper trail of evidence you have to show the average income you earn from Airbnb.
The Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002 is a South African law that regulates the financial advisory and intermediary services industry. Its main purpose is to protect consumers of financial products and services, professionalise the industry, and ensure that financial service providers act in a competent and ethical manner. The act applies to many intermediaries, including insurance brokers and mortgage brokers.
The National Credit Act (“NCA”) of 2005 is a law designed to regulate the consumer credit market in South Africa. It aims to promote a fair and accessible credit environment, protect consumers, and encourage responsible credit practices. How does that shape the landscape for consumers?
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