Loans Against Property Without Income Proof South Africa

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You can find various methods to take out a loan against your property in South Africa. But this would always be nice if you find the right way. At MoneyStar, you can get loans against your property without income proof with some trustable lenders in South Africa.

Remember, this is an excellent option if you are required a significant amount. You may have to cover the cost of home improvement, or you still struggle to get an unsecured loan. You must ensure you can lose your property if you cannot make timely payments.

What is a loan against property in South Africa?

As the name says, a loan against property is one you can get in South Africa from some lenders. These types of loans fall under the category of secured loans, and the security is your property, which may include your home, commercial property, or land.

The loan amount depends on the market value of your property, which lenders decide. But one of the conditions is you lose your property if you fail to repay your loan on time. Lenders recover their losses by selling your property.

There are specific reasons borrowers apply for such loans, including covering wedding costs, educational purposes and business expansion.

How do loans against property work?

Since loans against property are based on your home as collateral, you can use the funds for various things, such as taking out personal loans. You can get these loans if you are the homeowner.

Different ways can get you the funds on the value of your property. But the only risk you’ll face is losing your property if you don’t manage your loan repayments. Lenders don’t want to take risks; thus, they possess your property.

For instance: If the overall property value is R4,703,625.00 and the value of the mortgage is R1,907,157.00. It means you have the total value of your property R3 615 532,15. So you plan to borrow R1204869.00 to make the property value high, then you will be in profit if you intend to sell your home.

You can go for the loan amount of R946,218.60, and the equity can be used in your property for security purposes for taking out a loan. You can find various options to choose from for borrowing money. There might be an option to take your mortgage value high with the existing mortgage lender by R1 204 515,17.

It means your overall mortgage rise to R3 611 307,00. So whenever you look out for a loan against your property, lenders will evaluate certain things, such as your overall equity in your home, income, and credit score. Then, how much you can get is decided based on these terms.

What are the different types of loans against property in South Africa?

There are various types of loans you can take out against your property in South Africa. Most of the loans are mentioned below for you. You can review them once if you need more clarification on understanding this.

Types of loans against property:

  • 1) Secured loans: Secured loans are also called homeowner loans, which are protected against your asset’s worth. But many lenders accept some other valuables, too; they are fix-term loans offered by lending institutions and some loan providers.
  • 2) Second mortgage: In the case of a second mortgage, more equity is used in your asset to take out more money. It will be called a separate loan contract to the first mortgage, and it remains together with the first, or it can be a primary mortgage.
  • 3) Remortgage: If you are living with an existing mortgage on your home, you can remortgage it and increase the loan. You can do it only when your ongoing mortgage contract is almost completed. You may have to pay some penalties if you change the mortgage contract in between.

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Am I eligible for a loan against my property?

Yes, you can be eligible for the loan against your property if you meet the following criteria as a part of the process.

Eligibility for loan against property in South Africa:

  • Any rental-based income: You can prove any of your rental-based income.
  • Credit worth: Make sure of your credit worth
  • Address proof: You are required to provide your residential address proof.
  • Contact details: Your contact details are also mandatory.

How much can I borrow from loans against property without income proof South Africa?

The loan amount you’ll be able to borrow with secured loans depends from lender to lender. Generally, you can go for the loan amount against the worth of your home equity. Secured homeowner loans permit you to take out a sum of the amount against your property; it is equity in maximum cases.

The equity differentiates between the home’s worth and the money taken against it. These types of loans are for homeowners and mortgage payers who need to go for a high loan amount than other loans like personal loans.

What are the pros and cons of loans against property?

There are specific pros and cons of loans against property. Since these types of loans are secured, borrowers apply for them based on their property value. Collateral in the form of property can be residential or commercial. Know more about the pros and cons of loans before you decide to take a step.


  • Fast process: Since this is a secured loan, your loan process will no longer be approved.
  • Restriction-free loans: You can use the loan against your property for anything without any restriction.
  • Low-interest rates: you will have to pay lower interest rates for these loans.
  • More extended repayment period: You will get a prolonged loan repayment duration.
  • A perfect credit is not required: You don’t need a perfect credit to meet eligibility criteria.


  • Risk of property loss: In case of loan defaulting, you can lose your property because lenders cover their loss through your asset.
  • Financial difficulties over excessive borrowing: Borrowing beyond means can lead to financial difficulties. So, you should request the loan amount that you can afford in the end.
  • Expensive arrangements fees and other charges: You may have to face some expensive and other charges in case of irresponsibility.

When should I take out a loan against my property?

Loans against property are basically for the large amount you seek. You may not get the high loan amount from unsecured loans. Also, you will not be getting longer repayment terms with other loans.

The best advantage of these loans is that you can improve homes and cover small and significant expenses. You will also have a high loan amount and significant repayment terms.

Remember, these loans are risky because you may lose your asset if you don’t meet with repayments. So it would help to borrow according to your needs, not choice.

Why Choose MoneyStar?

You can choose MoneyStar for various reasons that fit your circumstances. Here are some reasons that back us.

  • Easy access: You can get an easy assessment platform to apply for loans without struggling further.
  • No paperwork formalities: You will not be dealing with manual formalities with some lenders.
  • Bad credit won’t hit approval: Your bad credit won’t be a problem getting loan acceptance for secured loans.
  • Unlike traditional lenders, no hidden fees: You will not be paying any hidden fees or extra charges.
  • Apply from anywhere: MoneyStar is 100% online available, and it means you can apply for a loan by just filling out a simple and secure application form.

Loans Against Property Without Income Proof South Africa- Some FAQ’s.

Are loans against property without income proof available for self-employed individuals?

No, you must have at least some income proof to get mortgage loans. Lenders can only help you with such loans with evidence of income source. Yes, some lenders are more flexible than traditional lenders when providing an income.

How is the loan amount determined for loans against property without income proof?

Generally, lending institutions stay with a loan to value to decide the loan amount, which has to be approved based on borrowing capacity. If you go for a higher loan amount, then there might be a possibility of facing approval rejection.

Can I lose my property if I default on the loan?

Yes, loans against property are a sample of secured loans, so if you cannot pay off your loan against your property. You will have dire consequences to bear ahead because lenders recover their losses by selling your property as their right.

Are interest rates higher for loans against property without income proof than traditional loans?

No, secured loans are lower than the interest charges for unsecured loans. But they are a risky option because your asset is repossessed after you cannot make loan payments on time. So this is very important to understand such loans before switching to them.

Can I choose the repayment tenure for these loans?

Yes, choosing repayment tenure is possible as per your suitability, but this depends on the lender to lender. Commonly ranges for loans against property are 1 to 15 years. And accurate tenure will depend on the borrowers’ capacity for repayment and the lending companies’ policies.

Using the MoneyStar, you may get from R100 to R35,000 in just 5 minutes.

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Micah Sedres

MoneyStar expert Micah strives to navigate finance niches like credit cards, loans, and mortgages easily. She helps hundreds of readers in credit building and provides money management tips. After regularly working for brands like, she joined the team as a staff writer to develop credit product reviews and comprehensive guides mainly focused on credit scores and loan/card offers.