South Africa’s luxury property market is thriving, with high-net-worth individuals – many of them self-employed – viewing property as an important part of their broader asset portfolio. However, substantial wealth does not always translate neatly into a conventional home loan.
Buyers with multiple income streams and more intricate financial structures – such as family trusts, listed shares, varied business interests and existing property investments – may find that conventional affordability assessments used by many banks do not fully reflect their overall financial position or borrowing capacity, says Gaylin Matthews, Head of Private Clients at BetterBond Home Loans.
According to the 2026 Africa Wealth Report by New World Wealth, South Africa is home to 48 200 high‑net‑worth individuals (with net assets or wealth of USD 1 million), the most of any country in Africa, and Standard Bank reports a doubling in the buying of residential and commercial properties by these buyers over the past 12 months. Many invest in sought-after areas such as the Atlantic Seaboard, parts of Gauteng and KwaZulu-Natal’s North Coast.
“Often, for these buyers, conventional bond assessments that focus heavily on salaried income and the value of the property will not suffice,” says Matthews.
Putting your wider portfolio to work
For private clients with substantial assets or multifaceted financial portfolios, lenders may consider liquid assets alongside the property being financed, explains Matthews. Depending on the lender and the client’s circumstances, listed shares or unit trusts, for example, may be pledged or ceded as additional security for the loan. “Using mixed collateral can give buyers greater flexibility when structuring a property purchase,” she adds.
In some cases, additional security can support a higher loan-to-value ratio than might otherwise be available, potentially reducing the amount the buyer needs to contribute. “For example, depending on the lender, asset mix and overall financial profile, it may be possible to structure finance above the common 80% threshold typically available on a conventional home loan,” says Matthews. “This can help a buyer preserve liquidity for other investments, business requirements or planned renovations.”
Another potential benefit is that the buyer does not necessarily have to sell any investments to fund the purchase. “Keeping assets invested can help preserve the underlying investment strategy, although buyers should consider the risks and potential tax implications associated with an eventual sale.”
Flexible drawdown structures
For buyers with substantial assets and more complex cash flows, the financing structure itself can be just as important as the amount borrowed, says Matthews. “Rather than simply taking a conventional lump-sum home loan, some private clients may have access to facilities that allow greater flexibility around how and when funds are used.”
For example, a buyer may be able to make additional payments into a home loan and, subject to the facility’s terms, access surplus funds again at a later stage. “This can provide an additional source of liquidity without necessarily requiring a fresh application for new, unsecured credit.”
Similarly, as a property appreciates or the outstanding bond balance reduces, a buyer may be able to access available equity through a further advance or re-advance facility, subject to affordability and approval. “This type of flexibility can be particularly useful for clients who are managing multiple investments or who want to retain access to capital for future opportunities,” says Matthews. “The objective is not simply to secure the largest possible loan, but to structure the debt in a way that complements the client’s broader financial strategy.”
In some circumstances, other structures may also be considered, including interest-only periods or repayment arrangements that align with an anticipated liquidity event, such as a business sale or dividend payment. “These are highly dependent on the lender and the buyer’s circumstances and need to be assessed carefully,” notes Matthews.
Keeping capital available
For a high-net-worth buyer, putting too much capital into a property can limit the liquidity available for other investments, business needs or future opportunities. Flexibility allows a buyer to retain capital for a new business venture, an investment, renovations or a future property purchase.
This is where a broader view of the client’s financial position becomes important, says Matthews. “Rather than assessing the property and bond in isolation, a private client approach considers how the proposed finance fits alongside their existing assets, income streams, investments and longer-term plans.” This entails analysing their overall financial position and working across multiple leading banks to identify and negotiate financing options suited to the individual’s circumstances rather than simply finding a competitive lending rate.
Understanding the risks
Using an investment portfolio as additional security can provide greater borrowing flexibility, but it also introduces risks that need to be understood. “If markets fall and ceded assets lose value, the lender may require additional security, a cash contribution or a reduction in the outstanding debt,” cautions Matthews. “Buyers need to understand that the value of their investment portfolio can affect the lending structure.”
There can also be consequences if repayments are missed or if the terms of linked facilities are not maintained. Depending on the structure, a default could have implications for assets provided as security.
Tax should also form part of the conversation. “If assets ultimately need to be sold, there may be capital gains tax or other tax consequences, depending on the asset, ownership structure and individual circumstances.”
Structured financing
For buyers with straightforward salaries and finances, a standard home loan may be all that is required. But for business owners, investors and high-net-worth individuals, the relationship between income, assets and liquidity can be considerably more nuanced. A property finance strategy that takes the wider portfolio into consideration can provide more options, from using liquid investments as additional security to structuring flexible access to capital over time.
“At the premium end of the market, flexibility is paramount. Having access to tailored financing structures allows high-net-worth buyers to secure the right property while keeping their broader investment strategies intact,” concludes Matthews.
