It happens far too often: a hopeful homebuyer applies for a bond, only to be told that their application was declined—without a proper explanation. Many people assume that’s the end of the road, and they walk away discouraged, confused, and unsure of what went wrong.

But here’s the truth: You have the right to know why your application was declined. In fact, South African law is very clear on this.

You Have a Right to Information – Section 72 of the National Credit Act

According to Section 72 of the National Credit Act (NCA), every consumer has the right to access their credit record and the reasons behind any decision made on their credit application.

Section 72(1)(c) of the NCA states that a credit bureau or credit provider must provide the consumer with the details of any credit record held about them, and the basis for any decision made.

That means if your bond application was declined, the bank must be able to tell you exactly why—whether it’s an issue with affordability, a credit report error, high debt-to-income ratio, or something else entirely.

Why You Shouldn’t Just Accept a Decline

Here’s why getting a proper decline reason is critical:

1. You might be able to fix the problem: If it’s an error or something temporary, you might be able to resolve it quickly;
2. You might be able to appeal or reapply: Sometimes the decline is based on outdated or incorrect information, or there were extenuating circumstances in the past that were resolved and not relevant to your future;
3. You can apply with another bank: Different banks have different criteria. A “no” from one doesn’t mean a “no” from all!

How a Mortgage Broker Can Help

Bond Originators work with multiple banks and financial institutions. If your application is declined by one bank, they can submit it to others—often with better results. But more importantly, they can help you get clarity on why a decline happened in the first place. Bond originators understand the banks and they will translate Bank Speak into Lamens terms for you.

Mortgage Brokers will:

• Request a detailed reason from the lender;
• Guide you in correcting issues (if possible);
• Resubmit your application to a more suitable institution.

Don’t Let Confusion Cost You Your Dream Home

If your bond was declined without explanation, don’t just walk away. You have rights, and with the right guidance, you may still be able to secure a home loan.

Need help? Let’s review your application and get the answers you deserve. Your dream home might be closer than you think.

Use a reputable mortgage broker

Using a reputable broker will ensure you get more clarity out of the bank’s feedback. By using a broker, you can access multiple offers simultaneously and negotiate on fees and interest rates so you can have the confidence knowing you received the best deal in the market at the time.

Phoenix Bonds is a premium mortgage broker in South Africa, with a proven track record (check out the reviews on Google).  For expert advice and personalised service, fill in your details HERE and one of our experienced Consultants will be in touch.