Most banks subscribes to standard industry definitions for property types. This list should assist you with your mortgage application.
Full Title
Full title describes the transfer of full ownership rights to the buyer.
House – This word is used to describe a normal house.
Cluster home – This is a freehold property, usually in a development of similar houses. The group of houses usually has limited access and good security. Each house is individually owned and there is no levy to be paid, unlike sectional title.
Residential property used for business purposes – The property will be regarded as residential property for business purposes if 50% or more of the property is used for business activities.
Smallholding – A property is classified as a smallholding if it is situated in or within a 150km radius of a built-up area, does not exceed 20 hectares, and is able to be connected to a local authority water supply or has a borehole.
There must be a house on the property and your main source of income must not be farming on that property.
Sectional Title
This describes separate ownership of a unit (section) within a complex.
Mini subtype house – This is a small, sub-divided portion of a large property which is suitable for cluster housing developments.
Semi-detached house – This describes two houses that are attached to one another. They may be on separate stands and bonded individually as ordinary houses. They can also be on one stand and bonded together under one bond. The other alternative is that they are sold as separate units in a sectional title development.
Townhouse or flat – A townhouse or flat unit must be in an approved sectional title complex. The complex must only contain residential units.
Duet house – This is similar to a semi-detached house, but there are two separate free-standing units on one stand. It could also be two dwelling units attached to one another on one stand. They can be sold under sectional title.
Get more information on sectional title from our sectional title FAQs.
Vacant land
A home loan will be granted for vacant land – but only where development is intended to take place within six to 12 months.
Loan amount on vacant land
If plans are available when you apply for a loan – A loan of up to 100% of the property’s assessed value may be considered.
If plans are not available when you apply for a loan – A loan of up to 75% of the property’s assessed value may be granted.