Can You Buy a House Without a Deposit in South Africa?
For many South Africans, saving up for a deposit is the biggest obstacle to buying a home. The good news? You can buy a house without a deposit — under the right conditions. Let’s break it all down.
What is a 100% Home Loan? A 100% home loan is when the bank finances the full value of your property purchase — meaning you don’t need to pay anything upfront as a deposit. It sounds ideal, especially for first-time buyers. But banks don’t approve 100% bonds for just anyone.
When Do Banks Approve 100% Bonds? Banks consider several factors when deciding whether to offer a no-deposit loan:
Your credit score: The higher, the better
Your income: Can you afford the monthly repayment?
Your debt-to-income ratio: Less debt = better chances
Employment stability: Full-time, consistent work is ideal
Buying with a partner? That could improve your chances
First-Time Buyers Have an Advantage Most banks are more open to giving 100% bonds to first-time homebuyers — especially if you’re buying a primary residence (not an investment property).
Government Help: First Home Finance Subsidy If you earn between 3,501 and 22,000 rands per month (combined household income), you might qualify for the First Home Finance subsidy. This can:
Act as your deposit
Lower the amount you need to borrow
Increase your chance of bank approval
Alternatives If You’re Rejected If the bank says no to a 100% bond:
Try another bank — different banks, different criteria
Apply with a co-buyer (spouse, sibling, etc.)
Use your subsidy (if you qualify)
Negotiate with the seller — some are open to accepting smaller deposits or delayed payments
Speak to a bond originator — they’ll shop around on your behalf for free
Pros of No Deposit Home Loans ✅ No need to save upfront ✅ Get on the property ladder sooner ✅ Use your cash for moving or renovations
Cons of No Deposit Home Loans ❌ Higher monthly repayments ❌ Possible higher interest rate ❌ You may owe more than the home is worth in early years (negative equity)
The Property Guys Can Help We’ve helped hundreds of clients secure homes with little or no deposit. From subsidy applications to bond originations, our team will guide you every step of the way.
Want to check if you qualify for a home loan or government subsidy? 👉 Click here to use our free affordability calculator
Final Thoughts Buying a home without a deposit in South Africa is possible — but it requires good planning, a strong application, and the right guidance.
Let’s help you unlock your future home. Reach out to The Property Guys today!
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