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Mortgage in South Africa
South Africans temporarily living and working overseas
Until
recently, the SA Reserve Bank controls have prevented South Africans
based overseas borrowing more than 50% of the value of the property
they wish to buy. However, we have a number of exclusive Lender
agreements through which we can offer clients bonds of up 90% Loan
to Value, provided that:
·
The South
African citizen has not been out of South Africa for more than 10
years and intends to return within this time period.
·
The
individual did not complete emigration formalities when they
departed South Africa.
Furthermore, the amount of money you can borrow will be based upon
your worldwide income. Should it suit your needs, we can also
organise Sterling or Dollar denominated bonds on SA property.
Foreign nationals:
Foreigners are referred to as non-residents, whether
they be natural persons or legal entities whose normal place of
residence, domicile or registration is outside the common monetary
area of South Africa.
There
are certain restrictions on property ownership by foreign nationals
In particular, due to the SA Reserve Bank ruling restricting foreign
ownership in South Africa, foreign buyers of property can only
borrow up to 50% of the purchase price of the property. This is a
technical area due to the definitions of the borrowing base, so you
are best advised to speak directly to a consultant to discuss your
individual situation. However, with a number of our exclusive
agreements we can also arrange for off-shore finance in the currency
denomination of your choice, whereby we can increase your borrowing
to a maximum of 75% of the purchase price. Please note that this is
only available for bonds above R2m.
Foreign
nationals are also subject to foreign exchange approval from the
South African Reserve bank. Financial assistance is granted in the
form of a loan secured by a mortgage bond to be registered in favour
of the bank granting the loan.
It is
advisable, but not entirely necessary, for foreign nationals to open
a South African bank account. Please speak to a consultant if you
require assistance in this, as it may be best to open a bank account
at the lending institution with whom your bond is registered.
Foreign nationals residing in South Africa:
If you are a temporary resident in South Africa on a
work or business permit, we can assist you in avoiding the 50%
borrowing restriction and can arrange bonds of up to 100% in
exceptional circumstances. It is important to note that when a
foreign national departs the Republic of South Africa, the criteria
for non-resident foreign national purchasers will apply and the bond
may have to be reduced to fall in line with the South African
Reserve Bank's formula requirements.
Arrange an
International Mortgage for your new home in South Africa |
