In an effort to make homeownership more attainable for more South Africans, several major banks have introduced a new zero-deposit housing scheme in 2025. This initiative aims to assist first-time buyers who often find it difficult to save for a deposit, removing one of the biggest barriers to entering the housing market.
This is part of a larger push to support housing accessibility and economic mobility, particularly for younger and working-class individuals and families.
Understanding the Zero-Deposit Housing Scheme
Under this scheme, eligible applicants can obtain a 100% home loan — meaning the bank will finance the full value of the home. Normally, buyers are required to pay a deposit ranging between 10% to 20% of the property’s purchase price. This program eliminates that upfront cost, enabling buyers to move directly into the property with financing only.
Eligibility Criteria
To qualify for this housing scheme, applicants must meet the following requirements:
-
Must be a first-time homebuyer
-
Must be a South African citizen or permanent resident
-
Should have a monthly income that falls within the bank’s lending criteria
-
Must have a clean credit record
-
Must qualify for a home loan under the bank’s financial evaluation
Benefits of the Scheme
The zero-deposit scheme offers various benefits, including:
-
No upfront deposit: Removes the need to save for a lump sum before purchase
-
Faster entry into the property market: Buyers can become homeowners sooner
-
Financial breathing room: Frees up savings for other costs like moving, furniture, or renovations
-
Expanded access to homeownership: Enables broader participation, especially for young professionals
Application Process
To apply for the scheme, interested buyers should follow these steps:
-
Identify a participating bank offering the zero-deposit option
-
Review the eligibility criteria and ensure you qualify
-
Prepare necessary documents including proof of income, identity, and credit status
-
Submit your loan application through the bank’s application process
-
Wait for evaluation and approval from the bank
FAQs
What is the zero-deposit housing scheme?
It is a home loan program in which banks provide 100% financing, meaning no deposit is required from the homebuyer.
Who qualifies for this scheme?
First-time buyers who are South African citizens or permanent residents with a good credit history and who meet income and loan eligibility criteria.
Are there risks with a zero-deposit loan?
Yes. Since you are borrowing the entire cost of the property, monthly repayments may be higher, and you may not get the most favorable interest rate.
Can this scheme be used for any property?
It depends on the bank’s valuation and lending policies. Some property types or locations may be excluded.
How do I apply?
You can apply by contacting your bank, ensuring you meet the qualification criteria, and submitting the required documents for loan processing.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.