25 Courtenay Street, Courtney Centre, George, South Africa
+27 44 004 0009
info@flagit.co.za

All you need to know about bonds

How does a bond work?

A bond, simply put, is a loan that a bank is willing to make to you over a long term (20 or 30 years). In return, the bank gets to charge you interest on the amount loaned and holds your property as collateral in case you can’t make your monthly payments.


What is bond cover? Do I need it?

Bond insurance is insurance that will typically settle your outstanding bond amount or cover monthly repayments should anything happen to you, i.e. you die, become disabled, or are diagnosed with a severe illness. It gives you peace of mind in the event that if something happens to you, your family won’t lose their home.


Do your research.

Interest, hidden costs, paperwork… it’s enough to put you off buying for a while, isn’t it? There’s an upside though. Despite the numerous ups and downs along the way, property tends to increase in value over time. If you bought at the right time and in the right place, your home will most likely be worth much more than the original selling price in far less than 20 years. Now that’s worth putting out the welcome mat for!


Documentation requirements

If you are an employed individual:

  • Proof of income: your latest salary advice. If you earn commission or overtime, please provide the latest 3 salary advices (for both applicants if applicable).
  • Latest 3 months personal bank statements (for both applicants if applicable).
  • Personal Assets & Liabilities Statement for loan amounts over R1 500 000.
  • Copy of your ID document (for both applicants if applicable).
  • Copy of Marriage Certificate or ANC Contract (if applicable).
  • Copy of the Purchase Agreement.*
  • Latest 3 months bond statements.**
  • Latest rates/Levy Statement/Utility account statement.**

If you are a self employed individual:

  • Proof of income: Letter of Drawings from an Accountant (for all applicants if applicable).
  • Latest 6 months personal bank statements (for all applicants if applicable).
  • Personal Assets & Liabilities Statement.
  • Latest 6 months business account bank statements.
  • Latest 2 years’ Annual Financial Statements.
  • Where Annual Financial Statements are older than 6 months to date, Current Management Accounts not older than 2 months signed by the applicant and accountant must be provided in addition to the Annual Financial Statements.
  • Copy of your ID document (for all applicants if applicable).
  • Copy of Marriage Certificate or ANC Contract.
  • Copy of Registration Documents or Trust Deed.
  • Copy of Purchase Agreement.*
  • 12 months bond statements.**
  • Latest rates/Levy Statement/Utility account statement.**