AA - July 2021

Author:  Tess Rodrigues
PROPERTY FACTOR
23 July 2021

Case Study: Foreign Resident Buying Property in SA

We’ve written before on the many benefits that South Africa offers to investors from around the world, and as the “global village” we all spoke about has become a reality, more and more foreign residents are buying properties in South Africa and require finance for their purchase.

If you ever wondered why one should use the services of a good mortgage originator when applying for a bond, this case study illustrates exactly what we achieve for our clients…

Our client is a foreign resident on a spousal/business visa, married to a South African citizen, and has been living and working in South Africa for approximately 7 years. He had applied for permanent residence, but, due to Covid 19, granting had been delayed. Furthermore, and potentially even more problematic, his temporary resident visa had expired in September 2020, although Home Affairs granted leniency until 1 July 2021 due to the pandemic.

The client owns his own business i.e. is considered to be self-employed, which has further ramifications in respect of the banks’ willingness to provide finance.

He approached his banker for advice and assistance but was incorrectly advised that very nice stop listening obtaining a home loan as a foreign resident he would require a 50% deposit.

The client, not willing to accept this as the final answer, then took the best possible step, visited our website, used the chat facility on the bottom right side to reach out to us and asked whether we could assist him. And indeed we could!

Because we have many years experience, not only in property finance but also in real estate and in banking, we are uniquely qualified to correctly analyse and motivate our clients’ applications for home loans.

After obtaining and scrutinising all the required documents, we established an error in their balance sheet that posed a huge problem when applying for finance. We then were able to approach the clients’ accountant and advised them on how to rectify the problem. Once the issue on the balance sheet was rectified, we submitted the application to all banks, including their personal bank.

Not only did we obtain a home loan finance but we did so at a record interest rate!

When it comes to granting home loans to foreign residents, all the banks have a different approach, and it can vary from month to month as circumstances change. Because we have an excellent working relationship with all the major banks, we are always aware of their specific requirements.

For this reason, if you’re a foreign resident requiring a home loan it is really vital that you approach us for assistance with your home loan, firstly, to determine which financial institution will best meet your individual requirements, and secondly, provide the bank with the necessary, supported and expertly motivated information to ensure a positive outcome to your application.

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