South African legislation requires that all applicants for credit or home loans understand the need for, and contents of, the National Credit Act (NCA). We provide a brief outline.

Why the NCA?
• Usury and Credit Agreements Act outdated
• Access to credit remains a problem for a large portion of the population
• Reckless lending by credit providers
• Exploitation of customers in the credit industry

The impact on home loan origination
• Additional information per applicant is required
• The bank will issue a letter of decline if the customer so requests

• The act only pertains to Natural persons and not Juristic entities has not changed
• New fees for initiation and service fees (communicated separately)
• The Mortgage Originator application will be signed at the Attorney’s office
• Warranties and declarations to be obtained from customer as part of
• Mortgage Originator application from

Useful Contact details
The national Credit Regulator [www.NCR.org.za]
The Department of Trade and Industry [www.DTI.gov.za]
Credit Information Ombud [www.creditombud.org.za]

A. Natural persons – Salary earners
• Completed application form
• Copy of a suitable ID document (Bar coded green I.D book)
• Proof of physical residence
• Latest salary advice as confirmation of your earnings
• Maintenance / Pension / Investments – proof required if taken in consideration for loan
• 3 months most recent bank statements reflecting your salary deposits†(NOT Internet)
• List of assets and liabilities - signed and dated by applicant (each applicant individually)

B. Self employed persons
• All above in section A
• Auditors letter confirming monthly drawings
• Financial statements (IRP5 or management accounts if financial statements not available)
• 3 months most recent business bank statements (6 months if available)

C. Closed corporation / Trust / Proprietary limited company
• Documentation as per natural persons FOR ALL MEMBERS
• Auditors letter confirming monthly drawing
• 3 months most recent business bank statements (6 months if available) – no internet statements
• Latest financial statements for Trust or CC (excluding own if self employed)
• CK1 and CK2 documentation / Deed of Trust
• Letter of authority if only one of multiple members applying

D. Commission / Overtime earners
• All above in section A
• 6 months most recent salary slips
• 6 months most recent personal bank statements (NOT internet)