Home Loans FAQ Guide

Buying a home in any market can feel daunting, however, it can become even more nerve-wracking when the market is tight and you need to make decisions quicker than you would have if it wasn’t. So how do you approach a tight market as a buyer? What do you need to do to secure your dream home?

An Offer to Purchase (OTP) is a legally binding agreement between a buyer and a seller in a property transaction. Once both parties sign the OTP, it finalizes the terms of sale, including the purchase price, property description, and any special conditions. Buyers can withdraw under certain conditions, but doing so without meeting the terms may lead to penalties. It’s crucial for both buyers and sellers to review the document carefully before signing to avoid legal and financial complications.

The government is considering stricter regulations to compel banks to disclose more detailed information about their home loan-lending practices. The aim is to boost access to home loans, particularly for previously disadvantaged groups, Human Settlements Minister Mmamoloko Kubayi said during a briefing in Pretoria.