Question:
I earn R13 500 before deductions and wish to apply for a home loan. I am, however, blacklisted. I am renting a house at the moment. Please help me if you can.

Answer:
Unfortunately if you are blacklisted it will be very difficult for you to get a home loan. You have to pay the old debt and get the judgement rescinded. You will have to contact a lawyer who specialises in this and it will cost approximately R1500. You can log onto www.loganattorneys.co.za for more information regarding blacklisting.

Once you have a clear credit record, only then can you apply for a home loan. The only way to overcome a judgement is to pay a huge deposit on the property (50 percent) so this reduces the bank’s risk.

Based on your income (assuming that you have no other debt) you would qualify for a loan in the region of R300 000 which admittedly is not going to buy you much. You may need to hold off until you can save for a large deposit.

Don’t be discouraged, keep looking for a property in your price range even if it is not what you want — it is important to make that first purchase. Subsequent purchases will be easier.

Your challenge is to stay out of debt until that time arrives. As a result of the National Credit Act banks are stricter about lending money and being debt free when applying will significantly improve your chances.