CAN NON-SA CITIZENS GET BONDS IN SA?

Date Added: 10/11/2007
Author/Source: Jessica Linde of BrayCorp Financial Services


A lot of my clients ask me about whether or not a non-SA citizen is able to get a bond to buy property in South Africa and I would love to address this common query.

Non-SA Citizens are able to get home loan finance to purchase a property here but what percentage of the purchase price they are able to obtain depends on whether or not they actually reside in South Africa. The reason for this is as follows:

The Reserve Bank (from which all 4 major banks obtain the majority of their capital) has, for exchange control reasons, ruled that non-SA citizens are required to bring into the country as much money as they are borrowing. It is for this reason that the banks will only grant 50% of the purchase price to a non-SA citizen living out of South Africa and, therefore, earning foreign currency.

For a non-SA citizen who is actually living in South Africa and earning Rands (with a valid work permit and / or temporary / permanent residency) this rule, strictly speaking, is no longer applicable. For this reason, many non-SA citizens living and working here are able to get up to 100% of the purchase price (assuming they qualify for that size bond).

Jessica Linde
11 October 2007