Can you apply for a home loan if your partner is under debt review?

When purchasing a home when you are not a first time buyer, it’s important to note that banks will not offer a 100% home loan, making it challenging to secure financing if you don’t have capital from your first property. Additionally, if you’re married in community of property or with accrual and your partner has previously owned a home, you won’t be eligible for a 100% home loan as a first-time buyer.
 
If one partner is under debt review, it can also have an impact on a bond application in South Africa, especially if you are married in community of property or with accrual.

Debt review is a formal process that is designed to help consumers who are struggling with debt by restructuring their debt repayments and reducing their monthly payments. While debt review can be a helpful solution for individuals who are struggling with debt, it can also impact their ability to obtain new credit, including a home loan.

When one partner is under debt review, the other partner can still apply for a home loan in their own name. However, the partner under debt review will not be able to be included in the bond application. This means that their income and assets cannot be used to qualify for the bond, and their debt review status will not be taken into consideration.

The partner who is applying for the bond will need to meet the lender’s eligibility requirements on their own, which can include a minimum credit score, income, and employment history. The lender may also request information about the partner under debt review, including their income and debt obligations, to assess the overall financial situation of the household.

It’s important to note that having a partner under debt review may impact the overall affordability of the home loan, as the partner under debt review may not be able to contribute financially to the household. This could result in a higher debt-to-income ratio for the partner applying for the bond, which could impact their ability to obtain the home loan.

In summary, if one partner is under debt review, it can impact a bond application in South Africa. The partner under debt review will not be able to be included in the bond application, and the partner applying for the bond will need to meet the lender’s eligibility requirements on their own.