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- October 2, 2025
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What Credit Score Do You Need to Qualify for a Home Loan in South Africa?
If you’re planning to buy a house in South Africa, one of the first things banks will check when you apply for a home loan is your credit score. Whether you’re a first-time buyer, an existing homeowner, or an investor in luxury property, your credit profile plays a major role in determining whether your bond gets approved and what interest rate you’ll pay.
At Real Time Property, we’re committed to helping you understand how credit scores work so you can prepare yourself for a successful bond application.
What is a Credit Score in South Africa?
Your credit score is a three-digit number that represents how reliably you manage debt. It’s calculated by credit bureaus such as TransUnion, Experian, and XDS based on your financial history.
Key factors include:
Whether you pay bills on time.
The amount of debt you currently owe.
How long you’ve had credit accounts.
How often you apply for new credit.
The type of credit accounts you have (e.g. car finance, store accounts, cellphone contracts, home loans).
Tip: The higher your credit score, the more trustworthy you look to banks—and the better your chance of securing a bond at a favourable interest rate.Why Credit Scores Matter for Home Loan Approval
When assessing home loan applications, banks look at your score to determine risk:
High credit score = banks see you as a low-risk borrower.
Low credit score = banks see you as high-risk, which may result in higher interest rates or a declined application.
Minimum Credit Score to Buy a House in South Africa
There isn’t a single “cut-off” number, since each bank has its own criteria, but generally:
600 – 650: Possible approval, but with higher interest rates.
650 – 700: Considered a good score, often approved with fair interest.
700+: Excellent profile, strong chance of approval with the best rates.
Quick note: In most cases, a minimum of 613 is needed to qualify for a home loan. However, a score of 650+ gives you far better odds, while 700+ puts you in a strong position to negotiate.How Credit Bureaus Calculate Your Score
Your score is influenced by several factors:
Payment history (35%) – consistent on-time payments are crucial.
Length of credit history – the age of your oldest and newest accounts.
Credit utilisation – how much of your available credit you’re using.
New applications – too many recent credit enquiries can lower your score.
Types of credit – having a mix of accounts (loan, credit card, contract) can help.
Credit Score Ranges in South Africa
Score Range How Banks See It Risk Level What You Should Do
0 – 486 Very unlikely to qualify High Get financial help and rebuild credit
487 – 526 Unfavourable High Pay bills on time, reduce debts
527 – 582 Below average High Fix report errors and lower debt
583 – 613 Average High Improve financial habits before applying
614 – 680 Fair Medium-high Pay down debt and strengthen record
681 – 766 Good Medium Likely to qualify at fair interest rates
767 – 999 Excellent Low Strong approval chances at best rates
What Credit Score is Best for Different Buyers?
First-time buyers: Aim for 650+. A bigger deposit can improve approval chances.
Existing homeowners: A 650+ score plus a clean repayment history helps if you want to refinance or upgrade.
Luxury property investors: Banks prefer a 700+ score, supported by strong income and asset proof.
How to Improve Your Credit Score Before Applying for a Bond
If your score is lower than you’d like, here’s how to improve it:
Pay all bills on time—late payments hurt your score. Reduce outstanding debts, especially revolving credit (like credit cards). Avoid applying for unnecessary new credit accounts. Review your credit report once a year (free through major bureaus) and dispute errors.Consistency is key: Building and maintaining good financial habits will raise your score over time.
Other Factors Banks Look at for Home Loan Approval
Besides your credit score, banks also check:
Deposit size – bigger deposits lower the risk and improve approval chances.
Employment and income stability – regular, stable income is essential.
Debt-to-income ratio – the less income tied up in existing debt, the better.
Final Word
Your credit score can be the deciding factor between bond approval and rejection. But it’s not just about getting approved—it also affects the interest rate you’ll pay over 20 years. A strong score, paired with a healthy financial profile, gives you the confidence to negotiate the best possible deal.
Once you’re ready, use a bond calculator to estimate what you qualify for and factor in transfer and bond costs.At Real Time Property, we’re here to guide you—whether you’re a first-time buyer, upgrading, or investing in luxury real estate. Contact us for your free credit check and pre approval
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