The prospect of owning your own home often pales in comparison with all the admin required, but it is worth it in the end.
Is it your dream to own your home by the end of the year? It is not easy and you have to jump through many hoops, but it can be done, an expert says.
Bradd Bendall, head of sales at BetterBond, says you have to navigate the administrative process and secure better interest rates through pre-approval and credit management.
“By capitalising on favourable market conditions, lower deposit requirements and strategic financial planning, prospective homeowners can transform a complex journey into a successful long-term investment.”
He adds that for many South Africans, owning a home is not just a financial milestone but a symbol of stability, security and belonging. In fact, 92% of South Africans believe everyone has a right to own a home, far above the global average.
“But while the dream is emotional and exhilarating, the actual homebuying journey can often feel cumbersome. Often, the administrative headache of paperwork, credit approvals and delays can contribute to what we refer to as the homebuying paradox.”
Bendall shares these seven smart tips to help turn your dream of homeownership into reality:
1. Bring in the experts
Working with trusted professionals, such as a bond originator, dramatically increases your chances of approval. Data shows that approval rates jump from 53% at one bank to 79% when applying to four or more banks with a bond originator.
“In addition, by partnering with industry experts such as estate agents, you can make informed decisions.”
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2. Save time – and money – with bond preapproval
Knowing what you can afford before you start looking for your dream home will save you money and signal to a seller that you are a serious buyer, Bendall points out.
“Bond pre-approval can be done online and at any time and bond originators do not charge for this service. It includes a credit check. Currently, 95% of BetterBond’s preapproved buyers go on to get bank approval for their bond.”
3. Get good credit
While it is not advisable to take on new debit or credit before applying for a bond, a strong credit score and healthy history will help with better interest rates and increase the chance of bond approval. “This is where pre-approval helps. As this process includes credit checks, it can point out gaps or pitfalls before you apply for a bond,” Bendall says.
Nearly half of bond applications were declined in 2024 because of affordability concerns or poor credit scores, he says “A bond originator can help avoid these pitfalls by assessing affordability, advising on credit health and making sure you have all the documents in place to ensure the best possible outcome.”
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4. Make the most of current market conditions
With the prime lending rate falling by 150 basis points since late 2024, affordability has improved and BetterBond has seen renewed borrowing activity. BetterBond’s home loan index is up 23.5% since the 2023 low and 16% year-on-year, with rate cuts supporting improved buyer activity, Bendall says.
“The sharp drop in average deposits required also made homeownership more accessible. According to the latest BetterBond Property Brief, first-time buyers saw a 20% year-on-year drop in average deposits and a 13% quarter-on-quarter decline.”
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5. Understand the economics
Buying a home is an emotional decision, but Bendall points out that you must also understand the economics that underpin the process.
“Your bond originator will advise on the merits of a variable or fixed interest rate, evaluate your affordability and suggest useful online calculators and advise on market conditions and timing.”
6. Think long-term savings
Every fraction of a percent matters on a home loan, Bendall says.
“BetterBond customers save an average of 0.65% on their bond rate, which can translate into tens of thousands of rands over the loan repayment period.
“Also, by paying a bit more into your bond every month, you will pay less interest over time. You can shave months off the repayment term of your home loan by just putting a bit extra into the bond.”
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7. Get covered
Bendall says you will need proof of homeowners’ cover or building insurance before you qualify for bond approval. Get a professional evaluation so that you can secure the appropriate cover for the value of your new home.
With expert support, smart financial planning and a clear strategy, your dream of homeownership in 2026 is well within reach, Bendall says. “The right guidance transforms homebuying into an empowering investment.”