For many buyers, the first step in house hunting is getting a prequalification certificate. Estate agents love them because they “prove” a buyer can afford a property. Sellers like them because they reduce the risk of wasted time.

But here’s the hard truth: most prequalification certificates in South Africa are nothing more than a tick-box exercise. They look official, but they’re often based on incomplete data, generic assumptions, or even just an online calculator.

The result? Buyers make offers they can’t actually back up, and deals collapse later when the bank says no.

A Prequalification Is Not a Single Number

Banks don’t decide affordability off one figure - neither should your prequalification.

Affordability is influenced by multiple levers:

• Gross income vs. net income – Banks calculate off gross income, but disposable income tells a different story;
• Existing debt obligations – Credit cards, vehicle finance, and personal loans all reduce available affordability;
• Credit score and payment history – Two buyers with the same salary might get very different outcomes because of their credit behaviour;
• Deposit size – A 10% deposit vs. no deposit can completely change your approval chances;
• Loan term – A 20-year term versus a 30-year term shifts the repayment profile dramatically;
• Bank appetite – Each bank has its own scorecards, risk weighting, and preferred client profiles;
• Debt Service Ratio (DSR) – Banks assess what percentage of your income is already tied up in debt repayments. A lower DSR improves your chances of approval; and
• Income-generating assets – Rental properties, dividends, or other income streams can strengthen affordability if properly presented to the bank.

A real prequalification isn’t about spitting out a single “maximum loan amount” - it’s about analysing these levers and discussing strategies to strengthen your application.

Prequalification as a Strategy

Think of prequalification not as a certificate, but as a planning session:

• Where can you reduce monthly debt obligations?
• Would a slightly higher deposit open the door to a better interest rate?
• Should you apply jointly or in one name?
• Could restructuring debt improve your Debt Service Ratio?
• How can you best present income-generating assets to strengthen your profile?

At Phoenix Bonds, we use prequalification to set a strategy, not to hand out a meaningless piece of paper.

Why Weak Prequals Hurt Everyone

• For buyers – false confidence leads to rejected applications and lost deposits;
• For sellers – wasted time and stalled sales when deals fall through; and
• For agents – credibility is damaged when “qualified buyers” can’t get finance.

This is why a tick-box prequalification does more harm than good.

The Phoenix Bonds Difference

Our prequalification process is bank-ready. We verify income, expenses, debt, and credit data properly. Then we sit down with you to discuss the “levers” you can pull to strengthen your application.

It’s not about handing you a certificate - it’s about giving you a plan. A Phoenix prequalification certificate carries weight because it’s backed by strategy, not just a spreadsheet.