With NCA requirements & strict Bank Credit Policies the process to get financing does take longer than before. The main reasons for bond applications being declined are affordability and your credit profile. Prior to the NCA, affordability was a simple calculation based on 30% of income.  Affordability is now based on net disposable income and for most people this means access to less credit than would have been the case in the past. A clean credit history and being up to date on all debt instalment payments is important

If you understand what the Act stipulates for loan applications, then you can understand what type of information the bank is going to ask of you.

1. Prepare a list of all income & expenditure. You must give total disclosure to your bank as they need this to determine your affordability. 
2. You must also provide a list of all your assets & liabilities (such a car, cell phone, and existing bonds that you pay off on a monthly basis). This will determine your risk or security profile for the bank;
3. Ensure your current payment profile is excellent! Pay on time every month at least for the 6 months prior to your application! 
4. Have your documents to hand including:

• bank statements

Note - Only income or salaries that reflect in your Bank statements will be accepted by the banks. The same goes for Rental Income that you may receive. If it’s not reflected in your bank statements – it won’t count towards your application.

• ID documents
• proof of residence
• confirmation of employment

Did you know...

• That  Banks have the right to withdraw from an approval at any given time prior to the registration of a Bond?
• If you have an Administration Order against you – no credit may be granted by any financial institution;
• If you are undergoing Debt counselling – no credit may be granted by any financial institution;
• If a loan has been granted to you over 12 months ago – the Bank will review your application AGAIN before registration takes place.

HAVE ANY BAD DEBT? Get your name cleared ASAP!

1. If you have any bad debt, you will need to provide proof that you have settled this debt, your bond originator can help you with this process.
2. If you have been blacklisted – your will need this to be removed & your payment profile behaviour updated to reflect this. 
3. Remember that this information is only updated once a month which can cause delays in processing.