Summary – Credit Criteria & Loan to Values
All employed applicants
- Proof of income Fixed monthly salary: Latest monthly payslip
- Weekly wages : Latest 4 weekly payslips
- Fortnightly payers: Latest 2 consecutive payslips
- Variable monthly salary: Latest 6 months consecutive payslips
Please note:
- Latest payslip must not be older than 60 days from date of application
- Payslips are compulsory for all applications irrespective of LTV
- Latest 3 months bank statements to accompany the payslip (SBSA account holder, please provide account number and we’ll access account details)
- An employment contract is acceptable as proof of income provided a detailed breakdown of income is supplied and the same can be confirmed with the employer
- Handwritten payslips or computer generated salary advises are acceptable only for applicants who are employed as domestic workers or gardeners
- IRP 5 is not compulsory; however it can be called for at credit’s discretion
(Applications submitted without the above will not be considered)
Confirmation of employment
- Confirmation of employment is compulsory on all applications irrespective of the LTV
- Obtaining the employers contact number in the telephone directory
- Obtaining the number from 1023 Obtaining the employers contact number on the internet which must be supported by a KI check on the business to verify its existence
(Employers contact numbers supplied on the application form by the customer or channel cannot be used)
Verification of income
- Matching the salary deposits reflecting on the latest 3 months personal bank account statements to the net salary reflected on the applicant’s latest payslip
- Confirming the salary with the employer (this option is only allowed where the applicant has recently started employment and only has an employment contract)
Please note:
- All salary deposits must either be made by employer cheque, EFT or internet payment
- Salary or wages must be a direct electronic deposit by the employer and not be made by the account holder – no cash deposits are considered
- The salary deposit featuring on the bank statement must match the payslip net salary amount and frequency
(Where income cannot be verified – the application will not be considered)
All self-employed applicants
All applications must be accompanied by the following supporting documentation:
- The latest 2 years signed (preferably) audited financial statements (not older than 12 months from date of application) of the business or businesses from which income is derived
- Where the signed latest audited financial statements are not available, the latest set of management accounts is required together with previous year’s audited financials for comparison purposes (management account will not be accepted in isolation)
- Latest statement of personal assets and liabilities
- Latest 3 months personal and business bank account statements for non-SBSA personal and business account holders (please provide us with the business account number for SBSA clients)
Unacceptable practices on self-employed applications
- 30% of business turnover as a means to prove or verify income is not acceptable
- Adding back depreciation to net profit is not acceptable
- Net profit cannot be used as income
- Income captured on all home loan applications must always be personal income
Income Types
| Cash Income |
An acceptable max of R6000 per month of cash earning (includes fixed and variable income) in instances paid to the employee without a banking account. Greater than R6000 per month must be deposited into a banking account) |
| Commission / Overtime |
To prove variable income, provide 6 months payslips or letter from employer specifying monthly variable income for the last 6 months and latest 6 months bank statements. Overtime generally not acceptable unless received every single month |
| Rental Income |
Rental income on properties bonded with SBSA – use full rental income received as part of total income. Rental income on properties bonded with other institutions – only net rental income can be used as part of the monthly income Provide a valid lease agreement or a rental schedule (the rental schedule should include: the purchase price, date purchased, rental received, bond repayment, property address, market value) |
| Maintenance |
A divorce court order and 3 months bank statements reflecting the monthly maintenance received. Cannot be accepted in isolation |
| Car Allowance |
The full value may be added to the customers’ income |
| Shift Allowance |
The full value may be added to the customers’ income, subject to it being a fixed income. |
Permanently Employed
(Fixed Term Contract) |
If the client has a 6 -12 month contract and previous employment > 2 years (not necessarily the same company). IPC may proceed provided it is a System Accept. If the contract < 6 months, then application must be referred to credit. |
| Monthly housing subsidy/allowance |
100% of the employer’s payment may be included as income. |
| Dividends |
Not acceptable. |
| Company Car |
Not acceptable. |
| Cell phone allowance |
Not acceptable. |
| Pension/Annuities |
Acceptable, provided it can be supported by a letter from the pension provider and verified via 3 months bank statements. |
| Bonus/13th Cheque |
Not acceptable, unless reflected on the pay slip on a monthly basis as a fixed income |
| Cost to company packages |
We will apply 65% of the total package as the cash component used to qualify the applicant to the loan |
| Switch statements |
2 months switch statements are required for all applications |
| Internet bank statements |
If internet bank statements are provided, at least 1 of the 3 months must be an authenticated bank issued statement and the other 2 statements may be from the internet. The internet statements do not have to be authenticated by a stamp. |
LTV Policy
1. LTV's for all New and Further Loans (based on the total loan amount and excluding Affordable Housing) will be as follows :
| Loan Amount |
LTV |
| < R1.5mil |
100% |
| > R1.5mil to < R2.5mil |
90% |
| > R2.5mil |
80% |
The LTV Criteria will be applied to SBSA and Non SBSA clients and is dependent on the risk rating achieved at application stage.
2. 100% LTV on Affordable Housing Applications
Applicants earning a combined income of < R15 733 fall into the Affordable Housing segment and loans within this segment will be considered up to 100% LTV.
3. Vacant Land (excl AH)
a. No VL for AH clients
| Client |
LTV |
| SBSA |
60% |
| Non SBSA |
60% |
4. South African Citizens living and working abroad
Applications from South African citizens living and working abroad (outside the common monetary area) will only be considered at a LTV of 70%.
5. Non Resident Applications
All non resident applications will be capped at 50% LTV
6. Customer qualification criteria
All application approvals will be based on the risk profile of the customer, the property and the development providing adequate security to Standard Bank.
7. Applicants that qualify for the Affordable Housing & First Time Home Buyer Offering
In instances where the applicant is an Affordable Housing client as well as a First Time Home Buyer, home loans of up to 104% will apply. The Standard Bank defines a First Time Buyer as an applicant / co-applicant / surety who has NOT owned a fixed property in his / her personal capacity or in the capacity of a legal entity (Close Corporation or Pty [Ltd] or Trust) where the private individual has been a member or shareholder or trustee respectively.
8. Development Loans
Standard Bank Home Loans have taken a strategic decision to focus on End-User Finance going forward. The impact of this decision is that we will no longer be accepting applications for Development Loans with immediate effect. Development finance will be done by Standard Bank Property Finance Division in future, on a very selective basis.
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