The current softness in the property market might not be good news for sellers, but many buyers have managed to find a property for sale in South Africa at less than its market value.

After you have found your dream home, the next step would be to apply for finance. When you apply for a loan at a finance institution, your credit history will have an impact on your ability to get a loan. It will also influence the interest rate at which the bank would be willing to finance the deal.

Having a credit history is important if you want a loan. Financial institutions use this information to assess the probability that you would default on your payments and hence whether you are considered a high or low risk client.

Your ability to get a loan would also be influenced by the risk profile of the bank – don’t get despondent if one bank declines you a loan. The next financial institution might have a bigger appetite for risk and approve the loan.

Just remember that even with an excellent credit record, you would still need to be able to afford your payments each month. The financial institution would also consider your disposable income and all your monthly expenses.

One of the best ways to improve your chances of getting a loan for your property for sale in South Africa is to save for a deposit.