FOR IMMEDIATE RELEASE
22 August 2025
First and Second Time Buyers: Tread Carefully in 2026
By Jonathan Acutt, Managing Director – Acutts Real Estate
South African buyers looking to purchase a property in 2026 must tread carefully when applying for a home loan. This is the advice from Jonathan Acutt, Managing Director of Acutts Real Estate, who cautions that while the market is currently benefiting from a series of interest rate cuts, securing the right bond still depends heavily on how buyers manage and present their disposable income.
“The concept of disposable income has become central to the bond application process,” says Acutt. “If you don’t understand how it is calculated, you risk reducing the amount you qualify for, or worse, missing out on a home loan approval altogether.”
The Market Advantage: Lower Interest Rates
The South African property market has gained momentum thanks to consecutive cuts in the repo rate. With improved affordability, more buyers are entering the market. However, lenders remain strict, and disposable income remains the decisive factor in how much a buyer qualifies for.
How Banks Assess Disposable Income
1. Net Income
Buyers must be able to prove all sources of income with salary slips, bank deposits, financial statements, or contracts. Self-employed individuals must remember to account for tax liabilities, as banks will make deductions where applicable.
2. Contractual Obligations
Existing debt, such as loans, vehicle finance, credit cards, and store accounts, counts against disposable income. Banks access credit reports through ITC, and undeclared debts will be added to expenses, potentially lowering affordability.
3. Monthly Expenses
Groceries, utilities, insurance, and household costs must be factored into budgets. Buyers moving from shared accommodation into their own home must also account for new costs like rates, levies, and services.
Why This Matters for Buyers
The lower your outstanding debt, the higher the bond amount you may qualify for. This is why Acutt advises working with a qualified, independent mortgage originator who can correctly position your application with the right bank.
“Your disposable income doesn’t just determine your home loan today, it affects your future financial flexibility,” adds Acutt. “If you stretch yourself too far, you may not have room to take on new commitments like a car or education costs later on.”
Consumer Responsibility Under the National Credit Act
While the National Credit Act protects consumers from reckless lending, buyers must take responsibility by budgeting honestly and disclosing their true financial commitments. Inflating figures or hiding debt could result in bond rejection and loss of protection under the Act.
Bottom Line for First and Second Time Buyers
With interest rates in buyers’ favour, 2026 presents an opportunity to enter or move up the property ladder. But buyers must prepare thoroughly: manage debt, understand disposable income, and work with professionals who can guide them through the bond approval process.
Media Contact:
Ashleigh Perry-Steenkamp
Head Office Manager – Acutts Real Estate
marketing@acutts.co.za | +27 (0)31 396 2969
