Your Roadmap to Buying a Home While on Debt Review or With a Poor Credit Score
Buying a home is one of the biggest financial milestones in life — but if you’re currently under debt review or struggling with a poor credit score, the banks are almost guaranteed to say “no.”
That doesn’t mean you’ll never own a home.
It just means you need to take the right steps now to set yourself up for approval in the future.
At The Property Guys, we work with clients every day who ask:
“I’m on debt review. Can I still apply for a bond?”
The short answer? Not right now.
The better answer? Here’s exactly how you can get there.
Step 1: Understand What Debt Review Means for Your Home Loan Application
Debt review is a legal process that helps over-indebted South Africans restructure their repayments, reduce interest rates, and protect assets from repossession.
While under debt review:
You cannot take on any new credit, including a bond.
You’ll be flagged at the credit bureaus as “under debt review.”
You’ll only be cleared once you’ve completed the process and received a Clearance Certificate.
If you apply for a home loan while flagged, your application will be declined — no matter your income.
Step 2: Complete Your Debt Review Successfully
This is your top priority.
Work closely with your registered debt counsellor to:
Stick to your repayment plan without defaulting.
Avoid missing payments — one missed payment can cancel the agreement.
Pay extra whenever possible to finish sooner.
The faster you finish, the sooner you can start rebuilding your credit score.
Step 3: Get Your Clearance Certificate
Once all the accounts listed under debt review are fully paid up, your counsellor will issue a Clearance Certificate.
This document will be sent to all credit bureaus to remove the “under debt review” flag from your name.
Important: Home loans are usually excluded from debt review because they are long-term debt. If you already have a bond, keep paying it separately.
Step 4: Rebuild Your Credit Score
When you exit debt review, your credit score may still be low — which can hurt your bond application.
Here’s how to rebuild:
Take small, manageable credit (e.g., store account) and pay it off in full each month.
Keep your credit utilisation under 30%.
Pay every account on time — even one late payment can drop your score.
Check your credit report regularly for errors.
It typically takes 6–12 months of good behaviour to see significant score improvements.
Step 5: Prepare Financially for Your Home Loan
While rebuilding your credit score, focus on strengthening your affordability:
Save for a deposit — even 5% of the property price can improve your approval chances.
Keep your debt-to-income ratio low.
Build a stable employment history.
Step 6: Speak to The Property Guys Before You Apply
Before approaching the banks directly, speak to The Property Guys.
We are registered bond originators, which means we:
Assess your affordability across multiple banks.
Help improve your profile before submission.
Apply on your behalf to get you the best deal possible.
We work with clients who’ve been on debt review every single day — and we know exactly when you’re truly ready to apply.
Final Thoughts
Being on debt review or having a poor credit score can feel like a financial roadblock, but with the right plan, it’s just a temporary detour.
Follow this roadmap and, when the time is right, we’ll help you take the final step into your own home.
Need help planning your next move?
💬 Contact The Property Guys today to discuss your future home loan application — even if you’re still on debt review.
📩 info@thepropertyguys.org
🌐 www.thepropertyguys.org
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