DECLINED - ABSA HOME LOAN APPLICATION - ***

Good day

It appears the bond was declined due to the agricultural property i want to purchase has old and dilapidated houses on it that were not built to spec.

Based on the bond being withdrawn, may I please find out on what basis the bond could be approved? As the Seller and I have privately come to a mutual agreement for the price of the property based on the surrounding prices of properties in the area, and I as the purchaser am well aware of the defects on the property and regarded it as a ‘’fixer-upper’’ in my planning going forward. I have renovated and done 4x other properties successfully, two of which is bonded by absa and are almost paid off in under 5 years. So based on my property knowledge and building experience I can say there will be no way I can default on this loan and I can only add value going forward.

So my two questions would be, could the bond perhaps be granted if a bigger deposit can be put down? Or what value have you concluded the property is worth so I could perhaps discuss a lowering of purchase price with the seller?

As I said above, I have every intention on fixing up the property, and I don’t believe the bank would not be able to hold value to structures that were built a long time ago and done privately as I’m sure most agricultural properties would have the same matter.

Hoping for your favourable response