Buyers guide to owning your own home


Buying a Cape Town home is a sure sign that you're hitting all the major milestones in life. At the same time, this financial decision can be daunting if you've never acquired a residential property before. 

To put your mind at ease as you browse our portfolio, we have put together a first-time homebuyers guide to help you along the road to homeownership. Even if it’s your second, third or sixth home this guide will serve as a great reminder and guide you through the process.

How the homebuying  process works.

You'll need to go through these steps when you buy a new home. 

  • Affordability. First things first; know what you can afford before you begin to look. An easy way to do this is by using a bond calculator.

  • Signing the offer to purchase - like you mean business. 

  • Approval in principle. This means you're creditworthy and meet the bond provider’s basic requirements. 

  • Property valuation. This takes a few days - hang in there. 

  • Bond. Choosing a bond provider by yourself or through a bond matching provider such as Ooba. Once you're happy with the rates and fees, you can proceed.

  • Transfer and registration. Don’t get caught out by transfer and registration fees which you will need to cover before your new home can be registered. This is done by a conveyancing attorney and it takes up to three months. 

  • Move in day - time to enjoy your new Cape Town home! 

Financing your dream home 

Falling in love with your dream home is the first step in the homebuying process. Before you can move in, you'll need to secure financing - and we can all do with a little help when it comes to the intricacies of bond approvals.

Generally speaking, aside from the documents you will need to get started, you’ll also need the following factors to be in place before you can apply successfully for a home loan.

  • A source of income. This would usually be a salary (preferably from a full-time job or consistent self-employed income) which you'll have to prove using several months bank statements and possibly a letter from your accountant.

  • Affordability. Having a good income may not be enough to secure a bond if your monthly expenses are too high. The reason is, your bond provider needs to know that you can afford to make your monthly payments without any trouble. Keeping your expenses low in the months leading up to your bond application is always a good idea.

  • A good credit score. To boost your chances of approval you’ll want to have a credit score of at least 600. You can achieve this by making sure that you pay your credit card and other accounts on time each month, maintain low balances on your cards, and pay down any overdue debts that you may have. 

  • A sizable deposit. It’s possible to obtain a 100% bond if you don't have a deposit, but it's definitely more difficult. Having a deposit of 10% or more significantly increases your chances of bond approval. As with the other points above, effective monthly budgeting will help you save up the this amount while also increasing your credit score and affordability. 

  • Insurance. It’s a good idea to protect yourself and your new home financially. A buildings protector covers the bricks and mortar of your home in the event of any structural damage. A bond protector insurance will give you peace of mind that your outstanding bond amount is covered in the event of your death or disability, or loss of income.

Ready to move? We're here to support your dreams 

The Cape Realty team has years of experience in the Mother City’s residential property market - and we’d love to share it with you. 
Contact us today to take the first step on your journey to buying a home. 

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