An estimated 2.4 million South Africans now earn their living through self-employment, and this growing group of gig workers is becoming a visible force in the property market, according to StatsSA and BetterBond.

Traditionally, variable income has been viewed as a barrier to homeownership. But Bradd Bendall, BetterBond’s national head of sales, said lenders are adjusting their approach. “Many banks recognise that self-employed applicants are entrepreneurs with a proven track record, and they are therefore often seen as a lower lending risk,” he said.

South Africa’s unemployment rate reached 33.2% in the second quarter, pushing many into freelance or contract-based work. Bond originators, Bendall noted, can improve freelancers’ chances of approval by helping them apply to multiple banks and ensuring their documentation is in order.

While banks typically offer self-employed applicants around an 80% bond, Bendall said this is becoming more flexible depending on the individual’s risk profile.

Top tips for self-employed homebuyers:


- Ensure tax and financial statements are up to date.
- Monitor your credit record and avoid unnecessary debt.
- Separate personal and business income and expenses where possible.
- Save towards a deposit to reduce lending risk and secure a competitive rate. All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).