Financing

Financing The decision to buy property in Cape Town happens almost immediately once you've fallen in love with South Africa. When financing property it is clear that South African interest rate are very high and with the current low interest rates overseas, it makes more sense to finance your dream property from Europe.
 

Property Financing in Cape Town - South African Banking

Financing Cape Town Properties


Property Finance - Real Estate Sale - Mortgage - Bond - banks - interest - Central Bank
 
Our company is authorised to apply for mortgage bonds. We will of course recommend various banks in order for you to compare a few different offers. Under the following links you can request a price comparison for financing:
 

 
Real Estate Financing overseas
Financing from Europe will only be possible if sufficient securities are in place and without this, no bank will finance a South African property in your home country. Should international financing be taken up, approval from the South African Reserve Bank is required. This will not pose a problem for you and can in fact only benefit.
 
South African Reserve Bank Approval
The approval of the South African Reserve Bank for the import of foreign exchange for the purchase of a property purchase is only necessary if the buyer, as a shareholder of a South African company, grants his own company a loan for the purchase of a property. This is then considered foreign financing and as such must be registered with the South African Reserve Bank (Central Bank). According to the loan agreement, the registration of the foreign loan allows the buyer to export interest and capital back overseas with ease and without complications.
 
Financing in South Africa
If a mortgage is required for the acquisition of a private home in South Africa, a written confirmation from the South African Bank is required. This written undertaking from the local bank should be applied for at an early stage so that it can be submitted to the financing bank at any time should a purchase contract be in place. Confirmation should include the property financing amount and an income statement is required as proof that the mortgage can be repaid.
 
Bank guarantee
In order to apply for a bank guarantee you will require a 3 - 6 months’ income statement, valid passport including permanent residence permit and the signed purchase contract. It is also necessary to provide proof of your current residential address. Processing time is approx. 5 working days if all documents are in order.

Particulars in the purchase contract
If the property in South Africa is financed and a purchase agreement to be signed, care must be taken to include a clause stating that the purchase agreement only comes into effect when the bank approves the bond.
 
Property Deposit
Once the purchase agreement has been signed, a deposit of 10% is generally due. Sufficient time allowance should be written into the purchase contract so that there is enough time to transfer the amount from Europe to South Africa. As a rule, a notary trust account is available in South Africa for the transfer. In principle, the purchase amount for the property should be paid into a trust account, and only the notary can issue a confirmation, so that the money from South Africa may be transferred back to Europe.
 
It is important to note that incoming funds will be frozen by the banks for 2 business days, if a money market account is used when exchanging money. The funds can however be accessed immediately, but a money market account will not be able to be utilised in this case. It is also possible to check whether funds can even be exchanged in your home country into South African Rand (ZAR). A comparison is always worthwhile as South African banks charge high processing fees and exchange rates are often unfavourable.
 
Our service
If you are looking at establishing a company in South Africa, we are agents of CIPRO, the Trade Register of the South African Trade Ministry, and as such, look forward to assisting you. We are also accredited in financing property in South Africa. Should all documents be in order, our processing time is approx. 2 working days.
 
For further information please do not hesitate to contact us.
 
Your South Africa real estate team