"Several South African banks confirm that there is no minimum income to qualify for a bond. Banks use your income to determine the size of the bond that you do qualify for.

The general rule is that banks will offer you a bond equivalent to the repayment of (33%) of your monthly income towards monthly installments. The installments will be calculated based of the interest rate you have been offered by the bank.

This is based on the repo rate or prime interest rate, which is set by the SA Reserve Bank.  A credit score is quite significant when it comes to an approved bond, be it good or bad, a credit score indicates your financial history to represent the credit worthiness of an individual.

This is where credit purchases come in handy, a good credit score gives the "Bond approver" a sense of how one pays their debt. Good credit scores allow an individual a positive rating when it comes to repayments of a bond. Have a look at your credit score today at www.transunion.co.za.

Whilst some lucky individuals are able to buy a home with cash up front, the average person has a reality of a finance delay when it comes to buying their first home. First time buyers now have an added advantage which helps their pockets and frees their mind of worry. How are you able to qualify for a bond with an added advantage? Have a look:

• You should be a first timer - first time applying for a bond.

• Be at least 18 years old, or older.

• Should be permanently employed longer than 6 months or self-employed for over 2 years.

First timers are sometimes offered a bond above 100% to cover some of the legal and transfer costs involved.  A lot of our banks now offer a 30-year bond repayment which makes it easier for your pocket as you focus on your new property, making the installment lower each month.  

Banks are showing an increased appetite to lend - according to first quarter (Q1 2018) property statistics recently released by Ooba, South Africa’s leading home loan originator. It's quite important to stipulate that you're a first-time buyer when applying for a bond so that banks allow you some leeway with regard to bond insurance.  

#AskEtchells - Speak to a professional agent of your choice who is fully qualified and experienced, with a precise and clear understanding of the process to purchase a home and get a bond approved.