An estimated 2.4 million South Africans now earn their living through self-employment, and this growing group of gig workers is becoming a visible force in the property market, according to StatsSA and BetterBond.
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Traditionally, variable income has been viewed as a barrier to homeownership. But Bradd Bendall, BetterBond’s national head of sales, said lenders are adjusting their approach. “Many banks recognise that self-employed applicants are entrepreneurs with a proven track record, and they are therefore often seen as a lower lending risk,” he said.
South Africa’s unemployment rate reached 33.2% in the second quarter, pushing many into freelance or contract-based work. Bond originators, Bendall noted, can improve freelancers’ chances of approval by helping them apply to multiple banks and ensuring their documentation is in order.
While banks typically offer self-employed applicants around an 80% bond, Bendall said this is becoming more flexible depending on the individual’s risk profile.
Top tips for self-employed homebuyers:
- Ensure tax and financial statements are up to date.
- Monitor your credit record and avoid unnecessary debt.
- Separate personal and business income and expenses where possible.
- Save towards a deposit to reduce lending risk and secure a competitive rate.Complete a bond pre-approval to know your affordability before house hunting.
Documents freelancers need for a bond application:
- The last two years’ financial statements, plus updated management accounts if older than six months.
- An auditor’s letter confirming income and expenses.
- A signed personal statement of assets, liabilities, and income versus expenses.
- Personal and business bank statements for the last three months.
- The most recent IT34 from SARS.
Gig workers, often on short-term contracts, tend to prioritise sectional title units or micro-apartments with reliable internet, office space and communal amenities. Some also opt for joint bonds with partners or friends.
“With more South Africans choosing contract work, there has been a shift in how banks assess affordability. Being self-employed is no longer a barrier to homeownership,” Bendall said.
