South Africa’s residential property market is showing renewed resilience, with improving affordability and competitive lending conditions supporting buyer activity. For prospective homeowners, particularly first-time buyers, that raises an important question: is securing a home loan prequalification really necessary before making an offer?
According to Rhys Dyer, CEO of the ooba Group, it can provide a meaningful advantage.
“Often underestimated, this document can offer significant benefits,” says Dyer, adding that potential homebuyers can easily log onto free platforms like ooba’s Bond Indicator tool to check one’s credit score, understand their affordability and receive a pre-approval certificate all within a few minutes.
Pre-approval versus prequalification
Dyer says buyers should understand the distinction between an initial pre-approval and a more comprehensive Qualified Buyers Certificate (QBC).
“A pre-approval is a quick and simple way to determine what you can afford and what your credit score is by using an online pre-approval tool like the ooba Bond Indicator (OBI). It increases your chances of having offers accepted by sellers and helps you to make adjustments to your finances as needed," says Dyker.
He adds that accessing a service like the OBI should be step 1 in every homebuyer’s journey.
“Available free online, the tool allows prospective buyers to check their credit score, determine their indicative affordability and receive a pre-approval certificate within minutes. This gives buyers an early indication of their home loan prospects and, importantly, a realistic price range in which to begin their property search.”
The QBC takes this process further by subjecting the buyer’s finances to a more detailed assessment, he says.
“A Qualified Buyers Certificate is a more robust version of a prequalification. It is conducted by a home finance expert who carefully evaluates your affordability in much of the same way that the banks do. Documents are assessed, in-depth credit checks are performed and your financial position is determined before you receive the certificate,” says Dyer.
A stronger position when making an offer
A QBC can potentially give buyers greater credibility when negotiating with sellers.
“A Qualified Buyers Certificate places you - the homebuyer - in an elevated position as a ‘qualified buyer’, giving you more bargaining power when it comes time to negotiate the terms and conditions of the property sale agreement. It is often conducted as a precursor to a home loan application and saves on approval times,” he says.
The figures suggest the process can be useful. ooba Home Loans recorded a 91.6% home loan approval rate among customers with a prequalification in August 2026, compared with an average of 91.2% during the first half of the year.
However, prequalification does not guarantee final approval.
“While a Qualified Buyers Certificate closely mirrors the affordability and credit assessments undertaken by the banks, final home loan approval remains subject to additional factors such as the property’s valuation and suitability as security for the loan amount, as well as any changes to the homebuyer’s financial circumstances between the time of issue and the formal home loan application,” explains Dyer.
Preparation can pay off
The latest market data reinforces the value of entering the property market prepared. BetterBond reports that home loan applications remain elevated, while improving affordability and stable interest rates are supporting demand.
For buyers who are declined, prequalification can also identify financial weaknesses before a formal application is submitted.
“The beauty of this process is that it allows you to address any weak spots prior to officially applying for a home loan,” notes Dyer.
Buyers can then focus on improving their credit score, reducing debt, increasing savings and organising documentation.
Shopping around is equally important. In August 2026, ooba Home Loans recorded a national approval rate of 84.5%, while achieving an average interest rate of 0.75% below prime.
For buyers, the message is clear: while a Qualified Buyers Certificate is not essential, being financially prepared can strengthen an application, improve negotiating power, and help avoid disappointment.
“In a competitive market, being prepared can make all the difference between finding your dream home and missing out on an opportunity,” says Dyer.
THE NATIONAL