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Updated: 1 year ago | Loans

Home Loans for Blacklisted in South Africa: Complete Guide

If I have bad credit, is it possible to apply for home loans for blacklisted people?

Do major banks like FNB, Standard Bank, Nedbank, ABSA and Capitec Bank offer any home loans for bad credit?

Even though being blacklisted may feel like the end of the road, there are other ways to get a home loan for bad credit.

Home Loans for Blacklisted in South Africa

What does Blacklisted Means?

If you are blacklisted in South Africa, it means that you have not been meeting your creditor’s payment obligations and you under judgment by court.

Use any of the free credit report services like ClearScore to check if you don’t have the following on your credit report.

  • Trace alerts
  • Administration
  • Sequestration
  • Default listings
  • Judgments

On your credit report, ensure that all items outlined have been done on your name.

If you notice any transactions that recorded by mistake, get in touch with the credit bureaus so that that they can rectify.

Looking for home loans for blacklisted and bad credit is just one of the few disadvantages that comes with it.

Being blacklisted comes with so many disadvantages, apart from just not being able to apply for home loans, you can’t qualify for vehicle finance or personal loans.

It is important to make sure that you take care of your credit history, the impact of bad credit can does not just involve being rejected major banks for credit, but can also spillover to you being hired by large corporates.

Yes, it does sound a little bit crazy, some employers will go as far as doing financial background checks before they employ you.

Although you could potentially qualify for home loan for blacklisted like how we going to show you shortly, it is important to always take care of your credit profile.

The only way to clear your name is to pay all you debts fully, and work on you credit score, we will show you how to improve you credit profile, this will open credit doors for you with many lenders and major banks.

How to Apply for Home Loans for Blacklisted

Major financial organizations would avoid offering you a house loan because of your existing situation.

They won't lend you money despite your assurances that you would repay them this time because of your credit history.

Your only choice is to hunt for smaller, alternative lenders in South Africa that provide house loans for those on blacklists.

Many of them are online-only and provide a quicker application procedure than conventional banks.

Typically, all you need to provide them is identity, proof of address, and three months' worth of bank bills to demonstrate your income.

Like conventional lenders, alternative lenders provide secured and unsecured loans to those on the blacklist.

The outrageously high interest rates attached to the product are the major drawback of taking out house loans from lenders on blacklists.

Rates may be as high as 28% per year, which is nearly four times the rate that banks typically provide.

This absurd interest rate is to be expected given that you are a high-risk customer who often misses payments.

Many loan sharks (Mashonisa) prey on those on the blacklist by taking advantage of their need for cash.

In exchange for the ease of skipping traditional verification procedures, these loan sharks demand significantly higher interest rates than other lenders.

Loan sharks (Mashonisa) and fake lenders won't have you submit several documents or go through a thorough background check before giving you money.

You'll probably be asked to sign a contract outlining the loan's interest rate, due date, and monthly payment requirements.

Make sure they are authorized to act as a lender by the National Credit Regulator in order to avoid dealing with loan sharks or phony lenders.

Your protection against unethical and abusive lenders is knowing that they are operating a reputable company.


Home loans for blacklisted are available in South Africa through other lenders, although major banks like FNB, Standard Bank, Nedbank, ABSA and Capitec Bank.