For many South Africans, owning a home isn’t just a financial milestone – it’s a symbol of stability, security and belonging. In fact, 92% of South Africans believe everyone has a right to own a home, far above the global average.
“But while the dream is emotional and exhilarating, the actual homebuying journey can often feel cumbersome. Often, the administrative headache of paperwork, credit approvals and delays can contribute to what BetterBond refers to as the homebuying paradox.”
Here’s seven smart tips to help turn your dream of homeownership into reality.
1. Bring in the experts
Working with trusted professionals, like a bond originator, dramatically increases your chances of approval. BetterBond’s data shows that approval rates jump from 53% (one bank) to 79% when applying to four or more banks with a bond originator. Furthermore, by partnering with industry experts such as estate agents, you can make informed decisions, says Bendall.
2. Save time – and money – with bond preapproval
Knowing what you can afford before you start looking for your dream home will save you money and signal to a seller that you are a serious buyer, explains Bendall. Bond pre-approval can be done online and at any time, and bond originators don’t charge for this service. It includes a credit check. “Currently, 95% of BetterBond’s preapproved buyers go on to get bank approval for their bond.”
3. Get good credit
While it’s not advisable to take on new debit or credit before applying for a bond, a strong credit score and healthy history will help with better interest rates and increase the chance of bond approval. “This is where pre-approval helps. As this process includes credit checks, it can point out gaps or pitfalls before you apply for a bond,” says Bendall.
Nearly half of bond applications were declined in 2024 because of affordability concerns or poor credit scores, notes Bendall. “A bond originator can help avoid these pitfalls by assessing affordability, advising on credit health and making sure you have all the documents in place to ensure the best possible outcome.”
4. Make the most of current market conditions
With the prime lending rate falling by 150 basis points since late 2024, affordability has improved and BetterBond has seen renewed borrowing activity. BetterBond’s home loan index is up 23.5% since the 2023 low and 16% year-on-year, with rate cuts supporting improved buyer activity, says Bendall. The sharp drop in average deposits required has also made homeownership more accessible. According to the latest BetterBond Property Brief, first-time time buyers have seen a 20% year-on-year drop in average deposits and a 13% quarter-on-quarter decline.
5. Understand the economics
Buying a home is an emotional decision, but you need to also understand the economics that underpin the process, says Bendall. Your bond originator will advise on the merits of a variable or fixed interest rate, evaluate your affordability and suggest useful online calculators and advise on market conditions and timing.
6. Think long-term savings
Every fraction of a percent matters on a home loan. BetterBond customers save an average of 0.65% on their bond rate, which can translate into tens of thousands of rands over the loan repayment period. Also, by paying a bit more into your bond every month, you will pay less interest over time. “You can shave months off the repayment term of your home loan by just putting a bit extra into the bond,” says Bendall.
7. Get covered
You will need proof of homeowners’ cover or building insurance before you qualify for bond approval. Get a professional evaluation so that you can secure the appropriate cover for the value of your new home.
An empowering investment
With expert support, smart financial planning and a clear strategy, your dream of homeownership in 2026 is well within reach, says Bendall. “The right guidance transforms homebuying into an empowering investment.”