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Buying a new home isn’t just an investment; it’s a power move. But let’s be real: making it happen requires more than luck and good vibes.
You need strategy, discipline, and a killer financial game plan.
“Whether you’re eyeing property in 2025 or tightening up your finances to capitalize on the lower prime lending rate, these tips will keep you ahead of the game,” says Bradd Bendall, BetterBond’s National Head of Sales.
Here’s your ultimate guide to making homeownership the best decision you’ll ever make.
Before you dive into late-night scrolling on real estate apps, lock down your numbers. Bendall recommends using BetterBond’s online affordability calculator.
It breaks down your income and expenses to estimate your monthly repayment based on the current prime lending rate.
“Always leave some breathing room in your budget,” Bendall advises. The prime rate can shift, so aim to spend slightly less than the calculator suggests. This cushion ensures you won’t sweat it if the market changes.
Time to Marie Kondo your spending habits. If it doesn’t spark joy (or isn’t essential), cut it. “Homeownership comes with hidden costs,” Bendall reminds us. Transfer duties, conveyancing fees, movers—these can add up faster than your UberEats bill.
Set up an automatic savings account and watch your reserves grow. Future-you will thank you when unexpected costs pop up.
Your credit score is the first thing banks scrutinize when you apply for a bond. “Ensure your accounts are current, and all bills are paid on time,” says Bendall. But don’t make the rookie mistake of closing all your accounts once you’ve paid them off.
“Maintaining some credit demonstrates that you can handle financial commitments,” he explains. Run a credit report from trusted providers like Experian or Credit Score to see where you stand. Bond originators, like BetterBond, can leverage your credit score to negotiate the best interest rates with multiple banks.
Sure, 100% bonds exist, but they come with a price. A deposit does more than lower your monthly repayments—it enhances your creditworthiness and can secure you a more competitive interest rate.
“A solid deposit reduces your risk profile in the eyes of the banks,” Bendall says. Translation? You save thousands over the life of your loan.
Pre-approval is your backstage pass to serious homebuying. Not only does it streamline the bond application process, but it also signals to sellers that you’re not just browsing—you mean business.
“BetterBond’s clients with pre-approvals enjoy a 95% success rate on applications submitted to banks,” notes Bendall.
You’ve got the keys; now, protect your castle. While many banks offer basic insurance, Bendall recommends shopping around for a policy tailored to your needs.
Ask the tough questions about premiums, excesses, and exclusions. And don’t forget the small print: your homeowner’s cover must match your property’s true value. For peace of mind, bring in an independent evaluator to ensure your home isn’t underinsured.
Got a year-end bonus? Instead of splurging, consider investing in your bond. “Extra payments chip away at your loan balance, reducing the total interest you’ll pay,” Bendall explains.
For example, adding just R1,000 to your monthly bond payment on a R2 million loan could slash R521,498 in interest and shave three years off your repayment period. Small moves, big wins.
Homeownership isn’t just a financial commitment—it’s a lifestyle. Between transfer duties, home inspections, and the cost of movers, the initial expenses add up fast. And once you’re in, maintenance and repairs can sneak up on you.
“Set up automated savings transfers to cushion unexpected costs,” advises Bendall. Whether it’s a leaky roof or a surprise plumbing issue, a rainy-day fund will keep your stress levels in check.
2025 is shaping up to be a banner year for homebuyers. With these financial strategies in your arsenal, you’ll be well-positioned to make confident decisions and secure the home you’ve always envisioned.
The road to homeownership isn’t always easy, but with careful planning and the right advice, it’s a journey worth taking.
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