Hints to get your mortgage approval

Bank Windhoek’s Market Research Analyst, Loide David, says that attempting to purchase a house without a plan in place can be a challenge. She recommends that first-time homebuyers do some advance planning and has set out some hints on how to successfully obtain a home loan from your bank:

Preparation: Speak to your estate agent or bank about applying for a home loan and which documents are required. Request them to sketch the costs involved such as the property’s actual price, plus transfer duties and conveyancing fees.

Keep your bank accounts healthy: In the time leading up to your home loan application, make sure that your bank accounts are healthy and portray the right image to your mortgage lender. There should be no late payments, unpaid debit orders, or overdrawn accounts throughout the application and purchasing process.

Banks will require at least six months’ bank statements to gain a full picture of your finances. If you are self-employed, the bank will need your cash flow statement, balance sheet, and income statements. Having these documents ready will speed up the processing of your loan application.

Monthly commitment limit: Work out a realistic monthly home loan repayment. A mortgage calculator, available on Bank Windhoek’s website, is an excellent tool for understanding how much you can afford. It is user-friendly and shows you what your monthly mortgage payment would be, taking into account different house prices and interest rate scenarios. The interest rate is one of the main contributors in determining the cost of your home loan.

Get a pre-approval: This is a bank document indicating how much they are prepared to lend you and the price range of the homes you can afford. Property sellers and estate agents will not consider your offer on a property without it. Provide the bank with your payslip, scheme or subsidy documents from your employers, six months’ bank statements, and proof of residential address or lease agreement.

Time to shop around: Understand the financial options that banks have available, like the Bank Windhoek Extended-term Home Loan, which gives you 30 years or 360 months to pay back the loan. It is essential to understand which banks’ terms suit your needs best.

Best time to buy: With the current low interest rates and Bank Windhoek’s Extended-term Home Loan, this is the opportune time to become a homeowner.

The application process can be seamless and stress-free if buyers are honest about their financial standing and provide any required information.

Remember to enquire about the valuation of the property you are interested in as the bank will only finance a house based on its valuation amount. Ask an estate agent or visit the Bank Windhoek Property Finance Division.


Loide David
Market Research Analyst