A 100% home loan in South Africa generally refers to finance equal to the approved purchase price or property value, subject to the lender's assessment. It does not automatically mean the buyer needs no cash. Transfer costs, bond-registration costs, deposits required by the sale agreement, rates or levy adjustments, insurance, moving expenses and property repairs may still need to be paid separately. Some qualifying first-time-buyer products offer more than 100% finance for specified costs, but eligibility, limits and permitted uses differ.
The percentage in an advertisement is a ceiling, not a promise. Approval still depends on the applicant, property, affordability, credit assessment and the lender's current rules.
What does a 100% home loan actually cover?
If a lender approves a conventional 100% loan, the loan amount can cover the full approved purchase price without a buyer-funded deposit toward that price. This can reduce the largest upfront saving hurdle, but it does not merge every part of the property transaction into one amount.
Three figures must be kept separate:
- Purchase price: the amount agreed with the seller.
- Loan amount: the amount the lender approves and registers, subject to its valuation and terms.
- Cash costs: amounts the buyer must pay outside the loan or before registration.
If the lender values the property below the agreed price or approves less than requested, the buyer may face a shortfall even after applying for 100% finance. The finance condition in the offer to purchase should therefore be reviewed carefully before signing.
What is a cost-inclusive or above-100% home loan?
Some lender products may approve an amount above the purchase price so that a defined portion can be used for qualifying transaction costs. Current official examples show why product-specific checking matters:
- Absa's home-loan pages advertise up to 110% for certain first-time-buyer or qualifying lower-income pathways, subject to terms and credit approval.
- Nedbank's published first-time-buyer terms describe an offer of up to 109% for qualifying applicants, with the additional portion intended for specified attorney bond-registration and transfer costs. The same terms list exclusions.
These examples are not a market-wide promise and do not mean every applicant will receive the maximum percentage. A lender may approve a lower amount, restrict how the additional portion is used, pay it through a particular process, or exclude some costs.
Costs a buyer should still check
| Cost or cash need | Usually part of the purchase price? | Could an above-100% product help? | What to verify |
|---|---|---|---|
| Buyer deposit toward the price | Yes | A 100% approval may remove this need | Sale-agreement deposit clauses and final approved loan amount |
| Transfer duty | No | Sometimes, if the product expressly allows it | Current SARS treatment, purchase date and whether the sale is subject to VAT instead |
| Transfer attorney fees and disbursements | No | Sometimes | A dated conveyancer estimate and the lender's permitted cost list |
| Bond-registration attorney fees and disbursements | No | Sometimes | Approved loan amount, attorney tariff estimate and any lender discount |
| Loan initiation or service fees | No | Product-dependent | The lender's quotation and whether financed fees attract interest |
| Rates, taxes or levy adjustments | No | Often separate | The transfer statement and managing agent or municipality figures |
| Homeowners insurance | No | Normally an ongoing cost | Cover required before registration and the monthly premium |
| Life cover | No | Depends on lender and applicant | Whether it is required, optional, separately priced or available elsewhere |
| Valuation, inspection or repair costs | No | Usually separate | Which assessment the lender performs and what independent inspection the buyer wants |
| Moving, utility connection and immediate maintenance | No | Usually separate | A practical post-registration cash reserve |
A cost that is technically financeable is not free. If it is added to the loan balance, the borrower may pay interest on it over the agreed term. Compare both the monthly effect and the total repayment effect.
Transfer duty is not the same as transfer costs
Transfer duty is a tax that may apply when property is acquired in a transaction that is not subject to VAT. SARS publishes the current progressive rates and states that a conveyancer normally handles the electronic process. For transactions under the current threshold, the transfer-duty calculation may be zero, but legal transfer fees and disbursements can still be payable.
“No transfer duty” therefore does not mean “no transfer costs.” Ask the conveyancer for a dated, transaction-specific estimate showing tax, professional fees, VAT and disbursements separately.
Transfer-duty check reviewed 8 September 2026: SARS lists no change for the rates effective from 1 April 2026. The first R1,210,000 of the property value is taxed at 0%, with progressive rates above that amount for transactions subject to transfer duty. The acquisition date and whether VAT applies still matter, so use the current SARS table and the conveyancer’s transaction-specific calculation rather than treating the threshold as a quote.
Use the Crescent Capital home-buying cost calculator for an initial planning estimate, then replace estimates with the appointed professionals' figures.
Who may qualify for above-100% finance?
Eligibility varies. Published products commonly target a defined group, such as qualifying first-time buyers, young professionals or applicants within an income or property-value band. Other exclusions may apply to self-employed applicants, juristic entities, vacant land, developments where costs are already included, switching loans or specialist products.
Before relying on an advertised percentage, ask:
- Is the offer currently open and available through the intended application channel?
- Does “first-time buyer” refer to no previous property, no existing home loan, or another product definition?
- Is there an income, occupation, age, property-value or loan-size limit?
- Which property and transaction types are excluded?
- What maximum percentage applies to this applicant and property?
- Which costs may the amount above 100% cover?
- How and when are those costs paid?
- Does a discount apply only to professional fees, or also to VAT and disbursements?
The answers should come from the current lender quotation and terms, not from an old advertisement or a third-party summary.
A 100% approval can still require cash
Consider a buyer whose purchase price is fully financed. Before registration, the buyer may still receive requests for transfer-related amounts, bond-registration items, advance rates or levies, insurance evidence and other transaction-specific payments. After registration, moving costs, utility deposits and urgent maintenance can arrive quickly.
The sensible plan is to keep three reserves separate:
- Transaction reserve for legal, tax and registration amounts not included in the loan.
- Moving reserve for occupation, connections and immediate practical costs.
- Emergency reserve so homeownership does not begin with no financial buffer.
An application that only works when every possible cost is financed may be vulnerable to a valuation change, a lower approval, a delayed subsidy or an unplanned property expense.
How a larger loan changes the repayment
An amount above the purchase price increases the opening balance. The effect depends on the interest rate, repayment term, fee treatment and whether extra payments are made.
Model at least three scenarios with the home-loan repayment calculator:
- the purchase price with a buyer-funded deposit;
- 100% of the purchase price; and
- the maximum cost-inclusive amount being considered.
Then compare the scheduled payment, total estimated interest and cash remaining after registration. A lower upfront cash requirement can be useful, but it should not hide a household budget that is too tight.
How First Home Finance fits into the picture
First Home Finance is a government subsidy pathway for qualifying first-time buyers in a defined income range. It is separate from an above-100% lender product. Depending on the approved pathway and process, a subsidy may reduce the initial home-loan amount, help with a shortfall or assist with qualifying costs.
Do not assume the subsidy is guaranteed, immediately available or interchangeable with a bank's additional finance. Confirm the current eligibility rules, required approval-in-principle, property requirements, submission process and payment timing before building it into an offer.
Read the Crescent Capital First Home Finance guide for the separate eligibility checklist.
A responsible application checklist
Before making an offer
- Calculate a comfortable repayment range rather than the maximum possible approval.
- Estimate transfer, bond-registration and moving costs separately.
- Ask for a current product checklist and terms.
- Keep proof of the source of any deposit or cost contribution.
- Review the finance condition and deadline in the offer to purchase.
Before accepting a loan offer
- Confirm the approved loan amount and percentage.
- Identify every amount that must still be paid in cash.
- Read the interest rate, term, fees, conditions and insurance requirements.
- Ask exactly what the additional financed portion can cover.
- Compare total repayment, not only the first monthly instalment.
- Check what changes if the purchase price, valuation or registration costs differ.
Before registration
- Obtain final attorney statements and resolve unexplained items.
- Put required insurance in place through a suitable provider.
- Keep money available for moving, utilities and immediate ownership costs.
- Do not spend the emergency reserve on optional upgrades before occupation.
Frequently asked questions
Can I buy a home with no deposit in South Africa?
Possibly. A lender may approve up to 100% of the purchase price for a qualifying applicant and property. This is subject to assessment and does not remove every cash cost.
Does a 100% home loan cover transfer costs?
Not automatically. A conventional 100% loan generally refers to the purchase price. A specific above-100% or cost-inclusive product may cover defined transfer or bond costs, subject to its limits and terms.
Is a 105%, 109% or 110% home loan guaranteed for first-time buyers?
No. Those percentages are product ceilings used by particular lenders for qualifying applicants. Approval, the actual percentage and permitted cost use depend on the lender's assessment and current terms.
If transfer duty is zero, do I still need money for transfer?
Usually yes. Transfer duty is only one possible component. Transfer attorney fees, VAT, deeds-office items and other disbursements may still apply.
Is it better to use savings or finance the costs?
It depends on affordability, the emergency reserve, loan pricing and the total interest effect. Compare documented scenarios instead of assuming the lowest upfront payment is always the cheapest option.
Can Crescent Capital guarantee a 100% home loan?
No. Crescent Capital can help prepare and submit an application and compare available outcomes, but the lender decides approval, percentage, pricing and conditions.
Can a bank valuation shortfall affect a 100% home-loan application?
Yes. A request for 100% finance is based on the transaction, but the lender still assesses the property and decides the acceptable security value. If the approved amount is below the purchase price, the buyer may need to fund the shortfall, renegotiate where possible or rely on the finance condition in the signed offer to purchase. Do not waive or miss that condition without appropriate advice.
Does a 109% or 110% home loan pay the extra percentage to the buyer as cash?
Not necessarily. Current lender examples restrict the additional portion to defined transaction costs and their own payment process. It should not be treated as unrestricted cashback. Confirm the permitted costs, payment route and final approved amount in the lender’s written terms.
Are all attorney fees covered by a cost-inclusive home loan?
No universal rule applies. A product may cover only specified transfer or bond-registration costs, may cap the amount, or may exclude VAT, deeds-office charges and other disbursements. Compare the lender’s written cost list with dated estimates from both attorneys.
Does cost-inclusive finance mean I need no money before registration?
No. Deposits required by the sale agreement, attorney requests, rates or levy adjustments, insurance, inspections, moving costs and any amount above the lender’s allowance may still require cash. Payment timing also matters because some amounts can be requested before financed proceeds are released.
Plan the full purchase, not only the deposit
Use the deposit calculator and home-buying cost calculator to build a realistic starting budget. When your income, expenses and supporting documents are ready, request a Crescent Capital application-readiness review.
Sources and review notes
- South African Revenue Service: current transfer-duty rates
- South African Revenue Service: transfer-duty process and current guidance
- National Credit Regulator: income and affordability-assessment guidance
- Absa: current home-loan range and advertised product ceilings
- Nedbank: first-time-homebuyer up-to-109% loan terms
- Nedbank: current digital home-loan application information
Sources, lender examples and SARS transfer-duty guidance were reviewed on 8 September 2026. Rates, thresholds, products and terms can change. Confirm the current provider documents and obtain a transaction-specific conveyancer estimate. This article is general educational information, not a quotation, approval, legal opinion, tax advice or guarantee.