Interest Rates
In South Africa, owning a home is a major milestone — and for many, that journey begins with qualifying for a home loan. While income, credit score, and expenses are the main ingredients banks assess, there’s another factor that plays a bigger role than most people realise: your level of education.
Here’s why having a diploma, degree, or other post-matric qualification can significantly increase your chances of getting that all-important home loan approval.
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When most people think about a home loan, they only think about debt — a long-term commitment to repay the bank. But what if we told you that your home loan could be your most powerful savings tool and also your cheapest source of credit?
Welcome to the world of access bonds (also known as access facilities). If you have a home loan in South Africa — or plan to get one — understanding how an access facility works can put you in a far better financial position in the long run.
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.
When it comes to long-term wealth building, property investment remains one of the most reliable and accessible strategies—especially in South Africa where demand for rental housing continues to grow. One powerful approach to property investment is using rental income to cover your bond and related costs, a model that, if planned carefully, can generate wealth through both cash flow and capital appreciation.
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.
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?
There are many different types of loans and methods of calculating and repaying interest. Your home loan is quite possibly the longest loan commitment you will make, so it’s critical to understand how the interest is calculated over the life of the loan, and what each repayment is actually made up of.
The prime rate has decreased three times by 25 basis points since September 2024, bringing the current prime rate down to 11%, which is good news for homebuyers. But why is it taking so long for the market to respond?
What is inflation? What is the role of the Monetary Policy Committee (MPC)? How do interest rates influence inflation?
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