Home loan pre-approval (What it is + why it matters)

Let’s be honest — the SA property market isn’t for the faint-hearted.

If you’re serious about buying, you need more than just a dream and a deposit.

We’ll show you how getting home loan pre-approval gives you the edge, and how to get yours sorted fast.

 

Home loan pre-approval

What is home loan pre-approval

Home loan pre-approval is a lender’s confirmation that a new buyer qualifies for a home loan up to a certain amount based on their finances. It’s not a final loan offer, but it shows estate agents and sellers that the person is financially prepared to buy and can close an offer faster. Pre-approval gives you a clear budget and can make your offer more attractive to sellers.

It’s basically the bank saying, “Yes, we’re likely to approve you — here’s your limit.”

Makes the process feel a little more real, doesn’t it?

⭐ Related content: What is a home loan and how does it work?

 

 

Benefits of home loan pre-approval

• It clearly sets your budget
• Sellers prefer pre-approved buyers
• Boost chances of approval
• Speeds up the buying process

 

It clearly sets your budget: Pre-approval helps you house hunt within the right price range — no time wasted falling in love with homes out of budget.

Sellers prefer pre-approved buyers: A pre-approval shows that you’re financially ready, which gives sellers more confidence in your offer, especially in competitive markets.

Boost chances of approval: Over 90% of home loan applications submitted with some of South Africa’s leading bond originators’ pre-qualification certificates are approved.

Speeds up the buying process: Since some checks are already done during pre-approval, final loan approval tends to be quicker once you’ve found a property.

Pre-approval doesn’t just help with buying a home — it helps you move faster, look smarter, and avoid nasty surprises.

Now that we’ve covered the “why,” let’s dig into the “how.”

 

How to get pre-approved for a home loan

To get pre-approved for a home loan in South Africa, you need to check your credit score, calculate what you can afford, and gather the required documents like your ID, payslips, and bank statements. Next, apply through a bank or a bond originator, who will submit your application to multiple lenders. If you meet the lender’s criteria, you’ll receive a pre-approval certificate stating how much you qualify to borrow.

Here’s a quick step-by-step breakdown:

1. Check your credit record – Use a service like My Score Hero, TransUnion or Experian to review your credit score and fix any issues.
2. Calculate what you can afford – Use an online bond calculator to estimate your affordability based on your income and expenses.
3. Gather your documents – Prepare your payslips, bank statements, and proof of identity (we’ll break this down below).
4. Choose a lender or bond originator – You can go directly to a bank or use a bond originator like Ooba or BetterBond to apply to multiple banks at once.
5. Submit your application – Fill out the application form and send in your supporting documents.
6. Wait for feedback – The bank will assess your info and issue a pre-approval certificate if you qualify.

 

It can feel scary if it is your first time. But it is a simple process. Just take it step by step.

⭐ Related content: What credit score is needed for a loan in South Africa?

 

Let’s zoom in on the documents you’ll need to tick those boxes.

 

Documents you need for pre-approval

To get pre-approved for a home loan in South Africa, you’ll typically need the following documents.

Documents you need for pre-approval:

• Valid South African ID (or passport if you’re a foreign national)
• Latest 3 months’ payslips
• Latest 3 months’ bank statements (reflecting your salary deposits)
• Proof of residence (e.g. utility bill, not older than 3 months)
• Completed home loan application form
• Income tax number (SARS registration)

 

These are your financial “receipts” — proof that you earn what you say you do and that you’re stable.

If you’re self-employed, you may need a couple of extra documents.

 

Documents for self-employed individuals

Additional documents for self-employed applicants:

• Personal and business bank statements for the past 6 months
• Annual financial statements (signed by a registered accountant)
• Latest IT34 from SARS (your income tax assessment)
• Company registration documents (from CIPC)
• Confirmation of income from an accountant
• Management accounts (if financials are older than 6 months)

 

Good. Now you know how to apply and what you’ll need.

Here are a couple of tips that can help you get approved or improve your rates.

 

Insider tips

• Check and fix your credit report early: Look for errors or missed payments and get them sorted before applying.
• Avoid new credit applications: Don’t take on new debt or open store accounts while applying — it can lower your score.
• Pay off small debts: Clear short-term debt to improve affordability. Banks want to see low monthly debt compared to income.
• Compare offers from multiple banks: Don’t just take the first offer. Use a bond originator or shop around — then use one bank’s rate to negotiate a better deal with another.
• Ask your bank to match or beat a rate: Loyal customers can often get better rates. If another bank offers less interest, ask your own bank to match it.
• Use bundle deals to lower the rate: Some banks give home loan discounts if you bank with them, hold a credit card, or switch your salary over. Ask what perks they offer.

 

What do you think? These are good tips, aren’t they?

We hope it helps.

 

Final thoughts

There you have it — a clear path to getting pre-approved for your home loan.

Start by checking your credit score, gathering your documents, and getting those applications in early. This small step can make a big difference in how quickly and easily you secure your dream home.

If you have a lot of debt. Think about reducing it first. Having lots of debt impacts your affordability, which can lead to higher interest rates on your loans.

Getting your interest rate down by 2%, 1%, 0.5%, or even 0.25% can save tens to hundreds of thousands in bond-interest costs.

If you want a reliable way to get out of debt, talk to our team at My Debt Hero.

⭐ Related content:

• How long after debt review can I buy a house? (Answered)
• Pay off your home loan in half the time (Here’s how)