Can I apply for a house while I am under debt review?

Question

Accepted Answer

No. You cannot apply for a home loan while under debt review. Section 88(1) of the National Credit Act expressly prevents a consumer under debt review from entering into any new credit agreement until one of the legally recognised exit events has occurred. Banks decline applications from consumers whose credit profiles show an active debt review flag. Once the debt review flag is removed, you are legally permitted to apply for a home loan. Eligibility then depends on your credit score, income, employment stability, and deposit, typically 10% minimum and 20% or more preferred. Most major banks, including ABSA, Standard Bank, Nedbank, FNB, and Capitec, consider home loan applications from consumers who have exited debt review, but typically require 6 to 12 months of clean credit history after removal. There is one scenario where a home loan pathway is possible while still technically under debt review: if your home loan was included in the debt review plan and only the home loan remains, with all other accounts settled, you qualify for a Section 71 Clearance Certificate with the home loan excluded. This removes the debt review flag while the home loan continues under its restructured terms. NDRC assesses whether you qualify for this route during the free consultation. It can significantly shorten the path to home loan eligibility.