Top 10 home loan providers in South Africa 2024

  • Best Home Loans: Discover the top 8 home loan options available in South Africa.
  • Comparative Analysis: Get a detailed comparison of interest rates, terms, and benefits to help you choose the best loan.
  • Expert Recommendations: Benefit from expert advice on selecting the right home loan for your needs and financial situation.

Home Loan Calculato

Owning a home is a significant milestone, and for many South Africans, securing a home loan is a crucial step towards achieving this goal. In this comprehensive guide, we’ll delve into the intricate details of the home loan landscape in South Africa in 2024. From understanding the top home loan providers to the key factors influencing your loan application, we’ve got you covered.

The Importance of Choosing the Right Home Loan

Perhaps the most impactful financial decision an individual makes is taking out a home loan. The longevity of mortgage repayments necessitates careful consideration of various factors. Choosing a home loan that aligns with your needs and budget is essential. By understanding loan conditions, you can plan effectively without burdening yourself with excessive debt over the loan’s lifespan.

Criteria for Evaluating Home Loans

When it comes to selecting the best home loan, it’s crucial to consider various factors. Our guide uses Rateweb’s listing criteria, focusing on costs, interest rates, service fees, deposits, and the reputation of the lending institutions. These factors collectively contribute to our selection of the top 10 home loan providers in South Africa.

Here are the Best 10 Home Loans in South Africa:

1. Absa Home Loan:

Overview: Absa Home Loan stands out with its comprehensive features designed to cater to a variety of needs.

Key Features:

  • Online Management Tool: Clients benefit from an advanced online management tool, offering efficient control over repayments and easy access to transaction history.
  • Interest Rate Options: Borrowers have the flexibility to choose between fixed and variable interest rates, providing adaptability to changing market conditions.
  • High Mortgage Limits: Absa provides mortgages covering up to 100 percent of the property’s purchase price, offering substantial financial support to homebuyers.
  • Special Boost for Young Professionals: Young professionals receive an extra advantage with mortgages extending up to 105 percent of the purchase price, potentially covering additional costs.


  • Deposit Fee: R4.50 plus R1.50 per R100.00 deposited into the account.
  • Service Fee: R69.00 per month.
  • Initiation Fee: R6,037.50.

2. Standard Bank Home Loan:

Overview: Standard Bank Home Loan is characterized by its straightforward approach, quick approvals, and personalized interest rates.

Key Features:

  • Repayment Term: Enjoy a repayment term of up to 20 years, allowing flexibility in managing your finances over an extended period.
  • Personalized Interest Rates: Benefit from personalized interest rates based on your credit score and history, potentially securing lower rates for financially responsible borrowers.
  • Efficient Approval Process: Standard Bank ensures a swift loan approval process, with the possibility of same-day approval for eligible applicants.
  • Online Application Advantage: Applying directly online eliminates commission fees, streamlining the process for convenience.


  • Monthly Service Fee: R69.00.
  • Initiation Fee: R6,037.00.

3. FNB Home Loan:

Overview: FNB Home Loan, offered by First National Bank, is a versatile and affordable solution catering to diverse financial needs.

Key Features:

  • Flexible Financing: Enjoy financing of up to 90% of the property’s value, easing the financial burden with a lower initial deposit requirement.
  • Extended Repayment Terms: Choose from repayment terms of up to 20 years, allowing borrowers to align their repayments with their financial circumstances.
  • Additional Benefits: FNB provides additional benefits, including insurance options to safeguard your investment and enhance financial security.

4. Capitec Bank Home Loan:

Overview: Capitec Bank offers a home loan product designed to accommodate different borrower profiles, combining flexibility and competitive interest rates.

Key Features:

  • Flexible Repayment Period: Capitec Bank provides a flexible repayment period of up to 20 years, allowing borrowers to tailor their repayment schedule to their financial capacity.
  • Interest Rate Determination: Interest rates are determined based on the prime lending rate, ensuring transparency and alignment with broader economic conditions.

5. Nedbank Home Loan:

Overview: Nedbank Home Loan comes with attractive features, including cashback incentives, reduced interest rates, and potential savings on bond registration fees.

Key Features:

  • Cashback Incentives: Clients can receive up to R15,000.00 in cashback on the loan value, providing a financial boost at the start of their homeownership journey.
  • Interest Rate Reduction: Enjoy a 0.25 percent reduction in the home loan interest rate when Nedbank is chosen as the primary bank, contributing to long-term cost savings.
  • Savings on Fees: Potential savings on attorney bond registration fees and competitive interest rates make Nedbank an appealing choice for home financing.


  • Monthly Service Fee: R69.00.
  • Initiation Fee: R6,037.00.
  • Cash Deposit Fee: R30.00 plus R1.51 per R100.00 or part thereof.

6. SA Home Loans:

Overview: SA Home Loans offers a variety of financing options, including home loans and refinancing, with an emphasis on flexibility and client-centric features.

Key Features:

  • Extended Repayment Period: Borrowers can obtain mortgages for a period of up to 30 years, allowing for a longer and more manageable repayment schedule.
  • Credit-Linked Interest Rates: Depending on the client’s credit history, they may qualify for the lending rate as their interest rate, potentially leading to more favorable terms.
  • Government Employee Benefits: Government employees using SA Home Loans enjoy preferential interest rates, a 50% discount on bond attorney fees, and the option to pay interest only for the first three years.

7. African Bank Home Loan:

Overview: African Bank Home Loan is tailored to assist individuals and families in financing home purchases or refinancing existing mortgages.

Key Features:

  • High Financing Percentage: Borrowers can access financing of up to 90% of the property’s value, reducing the need for a substantial upfront deposit.
  • Flexible Repayment Terms: African Bank offers home loans with flexible repayment terms of up to 20 years, allowing borrowers to choose a period that aligns with their financial circumstances.
  • Additional Benefits: Home loan customers enjoy insurance options to protect their investment, along with convenient online tools for managing their loans.

8. Investec Home Loan:

Overview: Investec, as a private bank, stands out with its comprehensive home loan deals, including extended repayment terms and competitive interest rates.

Key Features:

  • Extended Repayment Terms: Investec provides mortgages with repayment terms of up to 30 years, allowing for a more extended and potentially more affordable repayment schedule.
  • High Financing Percentage: The bank can finance homes for up to 100% of the purchase price, providing a comprehensive solution for homebuyers.
  • Competitive Interest Rates: Clients with good credit can benefit from some of the lowest interest rates in the market when financing through Investec.

9. Rand Merchant Bank (RMB):

Overview: Rand Merchant Bank (RMB) offers exclusive mortgage solutions for eligible private banking clients, incorporating advanced digital features and expert advisory services.

Key Features:

  • Exclusive Banking Features: Mortgage holders gain access to the acclaimed RMB app and can earn eBucks rewards points, with a maximum of 61,000 eBucks points and a 50% bonus.
  • Dedicated Banking Support: Each loan comes with a dedicated banker available to assist clients with their banking requirements.
  • Expert Advisory Services: Clients benefit from a team of experts in fiduciary, financing, asset management, and foreign exchange.

10. Housing Investment Partners (HIP):

Overview: Housing Investment Partners (HIP) focuses on providing financial solutions for low to middle-income earners, emphasizing flexibility and accessibility.

Key Features:

  • Gradual Payment Increases: HIP allows customers to start with low repayments, gradually increasing the installment amount over time, making homeownership more accessible.
  • Targeted Customer Base: HIP provides finance to individuals under the age of 40 but over the age of 21, targeting a specific demographic.
  • Loan Range: HIP offers loans ranging from R250,000.00 to R950,000.00, providing a diverse range of financing options for different housing needs.

How to Qualify for a Home Loan in South Africa

Understanding the eligibility criteria is crucial when applying for a home loan in South Africa. A credit score of at least 640 enhances your chances of approval, with higher scores providing better prospects. Generally, a minimum income of R3500 is required, though this can vary depending on the lender and property cost.

Current Home Loan Interest Rates in South Africa

As of July 2022, South Africa’s prime lending rate stands at 8.25%. It’s essential to stay updated on interest rates, which have seen fluctuations in recent times. The knowledge of current rates empowers borrowers to make informed decisions.

Overview of the South African Home Loan Market and Current Trends

The South African home loan market plays a pivotal role in the country’s economy, offering financing options for aspiring homeowners. Increased competition has led to lower interest rates and more flexible repayment options, facilitating easier access to home financing. A notable trend is the growing demand for online banking and digital solutions, providing customers with convenient tools to manage their loans.

Comparison of Home Loan Options from South African Banks

Understanding the various home loan options is crucial for prospective borrowers. South African banks offer fixed and variable rate loans, online home loans, green home loans, joint home loans, and more. Each option has its own set of features, benefits, and requirements. A thorough comparison is necessary to make an informed decision.

Requirements for Applying for a Home Loan in South Africa:

  1. Credit Score:
    • A good credit score is crucial. In South Africa, a credit score of at least 640 is typically required.
    • Higher credit scores, such as 670 or above, significantly increase the chances of loan approval.
  2. Income:
    • Most banks will require a stable and regular income to ensure the borrower’s ability to repay the loan.
    • The minimum income required can vary but is generally around R3500.
  3. Deposit:
    • A deposit is often required, typically ranging from 10% to 20% of the property’s purchase price.
    • Some banks may offer 100% home loan options with no deposit, depending on eligibility.
  4. Employment Status:
    • Stable employment is usually a requirement. Some banks may prefer permanent employment over a contract basis.
  5. Age:
    • Most banks have age requirements. Borrowers typically need to be at least 18 years old, and some banks may have upper age limits.
  6. Residency:
    • Borrowers are generally required to be residents of South Africa.

FLISP Home Subsidy:

The Finance Linked Individual Subsidy Programme (FLISP) is a government initiative aimed at assisting first-time homebuyers in South Africa. Here’s how it works:

Eligibility Criteria:

  • Income Threshold: To qualify for FLISP, applicants must earn between R3,501 and R22,000 per month.
  • First-Time Homebuyers: FLISP is available to individuals or families who are first-time homebuyers.

How to Apply for FLISP:

  1. Check Eligibility:
    • Ensure that your income falls within the specified threshold.
    • Confirm that you are a first-time homebuyer.
  2. Apply for a Home Loan:
    • Apply for a home loan with a participating financial institution.
  3. Submit FLISP Application:
    • Submit a separate FLISP application to the Department of Human Settlements or the relevant provincial department.
  4. Verification Process:
    • The government will verify your eligibility for FLISP.
  5. Approval and Disbursement:
    • If approved, the FLISP subsidy will be disbursed, reducing the initial cost or monthly repayments of your home loan.
  6. Use of FLISP Subsidy:
    • The subsidy can be used to reduce the purchase price, cover transfer costs, or lower monthly repayments.

Important Points:

  • FLISP is not a standalone program; it works in conjunction with a home loan application.
  • The subsidy amount varies based on income and other factors.
  • FLISP is designed to make homeownership more accessible for low to middle-income individuals.

Potential homebuyers should check with the Department of Human Settlements or relevant provincial department for the most up-to-date information on FLISP and its application process. Additionally, each bank may have specific requirements, and it’s advisable to consult with the chosen financial institution for precise details on applying for a home loan.

Advantages and Disadvantages of Fixed vs Variable Rate Home Loans

AspectFixed-Rate Home LoansVariable-Rate Home Loans
Interest Rate StabilityAdvantage: Offers predictability as the interest rate remains constant for the agreed-upon term.Advantage: Potential for lower initial interest rates, providing immediate cost savings.
Disadvantage: Less flexibility if market interest rates decrease during the fixed term.Disadvantage: Payments can increase if market interest rates rise, leading to less predictability.
Budgeting and PlanningAdvantage: Easier budgeting as monthly repayments remain consistent throughout the fixed term.Advantage: Lower initial repayments may benefit budgeting, especially if rates remain low.
Disadvantage: Lack of flexibility if economic conditions change.Disadvantage: Uncertainty in budgeting as repayments may fluctuate with changing interest rates.
Protection Against Rate HikesAdvantage: Shields borrowers from potential interest rate hikes during the fixed term.Advantage: May benefit if market rates decrease during the variable term.
Disadvantage: No benefit if market rates decrease during the fixed term.Disadvantage: Vulnerable to higher repayments if market rates increase.
Initial Interest RateAdvantage: Fixed rates are often higher initially but offer stability.Advantage: Variable rates may start lower, potentially leading to initial cost savings.
Disadvantage: Initial rates may be higher than current variable rates.Disadvantage: Rates may increase, leading to higher repayments.


  • Fixed-rate loans provide stability but may not take advantage of potential rate decreases.
  • Variable-rate loans offer flexibility but expose borrowers to market fluctuations.

The Role of Property Valuations in the Home Loan Process

Property valuations are integral to the home loan process in South Africa. Assessing the market value of a property helps banks determine the loan-to-value ratio (LTV) and the amount they are willing to lend. A thorough property valuation considers factors such as location, size, condition, and recent sales data.


Securing a home loan in South Africa involves meticulous planning and consideration of various factors. The diverse options provided by the top 10 home loan providers cater to different needs and preferences. By understanding eligibility criteria, market trends, and the pros and cons of various loan types, prospective homeowners can navigate the process with confidence. The dream of owning a home in South Africa is within reach, and this comprehensive guide aims to empower individuals on their homeownership journey.

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