Acceptable Income Sources
Careful attention needs to be paid to the sources of your income when you apply for a home loan. All income taken into account must be of a permanent nature. The banks have adjusted their credit approval requirements to fit in with the National Credit Act which came into effect July 2007.
The following types of income are acceptable to the various banks:
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Monthly Salary - your gross monthly income before tax, pension and medical aid deductions |
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Car Allowance - you may add the full benefit amount to your income |
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Company Car - a percentage of the benefit may be included, provided you have full use of the car |
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Housing Subsidy or a Housing Allowance - 100% of your employer's payment may be included as income |
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Commission - based on your average earnings over a 6 month period, provided this continues |
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Maintenance - in cases of divorce 3 months proof of payments are required. A copy of the court order stating the maintenance amount and proof that payments are received on a regular basis are required if these are to be included in your income calculation |
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Overtime - based on your average earnings over a 6 month period provided this is permanent |
Is joint income acceptable?
Joint income may be taken into account in the following circumstances:
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where the property is registered in the names of all the people whose incomes are taken into account |
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income shared by a husband and wife - either can sign surety |
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income shared by a company, close corporation or trust |
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the income of a surety who will be paying your instalments |
What other income sources are acceptable?
Income from permanent sources other than those mentioned above (including unearned income from investments, annuities and trusts) may also be included, provided the income is of a permanent nature.
Net rental may also be accepted, provided that a copy of the lease agreement is presented.
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