Rob Lawrence, National Manager of the bond origination company Rawson Finance, has drawn attention to the fact that, for those in the right income bracket and buying at the approved price levels, 100 percent bonds are still available — and his company, he said, is making a point of punting this throughout SA.

"Certain press reports," said Lawrence, "have implied that the banks have turned their backs on 100 percent loans, possibly in perpetuity — but here at Rawson Finance through one enlightened bank we can slot suitable clients into finance at this level."

How to qualify

To qualify for a 100 percent bond, he said, the applicant must not earn more than R11 210 per month and, if a couple purchase, although their incomes will be added together, neither can exceed that individual limit. Effectively, said Lawrence, this means their joint incomes may not exceed R22 420 and, if they buy jointly, the house they plan to buy must not cost more than about R540 000. In some cases, with this product, all or some of the acquisition costs may be included in the bond.

"The banks' offering is, therefore, ideal for couples, young or old, who may be buying for the first time or who are moving up from an RDP house."

Homeownership now possible

Unfortunately uninformed reporting had, said Lawrence, led to 'considerable despair' at the lower level of the market and the belief among many that they would never become homeowners — but the availability of these 100 percent bonds can, he said, change all that.

Lawrence advised those who will now go house hunting with renewed hope to cut right back on their personal debts as these have to be taken into account by the banks if they are to comply with the National Credit Act. Doing so is a pre-requisite to qualify for these bonds. Applicants must ensure that they have an 'absolutely clear and squeaky clean' credit record, rectifying as soon as possible any missed or short-paid accounts.