Your home loan application has been turned down. You thought that property had your
name written on it. It was exactly what you wanted. Now your dream has been shattered.
Don’t give up!
There are other options to explore:
The seller may agree to an installment sale agreement. You are given time, maybe
a year or two, to pay off the purchase price or part of it, and then apply for a
homel oan. Although registration of transfer is delayed, your name gets stamped
right away on the title deed at the Deeds Office to protect your interests.
You may approach a credit worthy family member or trusted friend to join you as
owner, which should diminish the lending bank’s risk. (There are however, risks for
If there is no existing bond over the property and the seller is prepared to wait
for the proceeds (plus interest), he/she may be prepared to lend the balance subject
to a bond being registered in favour of the seller. The bond is the seller’s security
and he/she is somewhat in the position of a lending bank.
The seller may agree to a rental agreement, coupled with your option to purchase
during the currency of the lease.
If none of the above is viable, because the seller wants his money now, there is
Rent2buy Finance is prepared to help in certain circumstances. The property price
must be in the range of R400 000 to R1,8 million and you must be able to put down
a deposit of 7%. You make application to them and they will do their analysis and
checks. If viable for them, they will actually buy the property and rent it out to
you with the option to buy at a later stage. Of course there will be t’s and c’s,
which cannot be covered here. We can assist with your application.