For us, homeownership isn’t just a line in a brochure; it’s the heartbeat of our mission.

We exist for one clear reason: to give more South Africans the chance to walk through a front door they truly own.

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Who We Are

We are an innovative home loan provider, established to give retirement fund members, who can afford to rent but were previously overlooked by traditional banks, the opportunity to own a home.

Our unique financing model, through partnership with retirement funds, provides index-linked home loans to retirement fund members who are currently renting and unable to access traditional bank finance. Our escalating bond repayment plan means that your initial repayments are more affordable at a level that is comparable to the cost of rental, and increase over time as your income increases, similar to rental payments.  Our model turns the impossible into the achievable.

This foundation enables us to help more members become homeowners, while preserving and growing our retirement fund partners’ investment with the care and oversight it deserves.

By helping people escape the rent trap, we convert monthly rental payments into ownership pathways, enabling individuals to secure homes earlier in life. At our core, we are enablers of ownership—turning rent slips into title deeds, and dreams into addresses.

If you can rent it, you can own it.

Who we serve

REAL exists for working South Africans who have been locked out of traditional home finance.  In partnership with their Employers and Retirement Funds, we serve individuals who can afford to rent but cannot access bank finance due to outdated credit models or deposit requirements, as well as existing home owners switching into a REAL home loan to benefit from our favourable terms.

Our Customers

To qualify for a REAL home loan, you must be an active contributing member of a retirement fund that has partnered with us. Our model is designed specifically for these members, helping them turn rental affordability into an ownership opportunity by leveraging their accumulated retirement fund benefits.

Our mission is to put more South Africans into a position to own their own homes.  This includes:

  • Salaried individuals who have been renting long-term
  • First-time buyers with limited access to credit, and
  • People who are financially responsible but don’t meet rigid bank lending criteria’.

We further offer existing home-owners, who already have a mortgage bond, the option to switch to a REAL home loan if they will benefit from our favourable terms.

Our Partners

All Defined Benefit and Defined Contribution Retirement Funds with actively contributing members who are looking to optimise their investment portfolio while adding tangible social  benefit to their members.

We will engage with the Fund’s investment advisors and consultants to determine how this debt instrument can be used to enhance the existing investment strategy.

We further work closely with the Fund’s Administrators to, firstly, assess the number of members who will be eligible for a loan.  A close working relationship with the administrator will continue during the roll-out and ongoing administration of members’ loans.

The Employer is an important stakeholder in the process.  It gives an Employer the opportunity to offer their employees access to a REAL homeloan that will be highly valued by employees.  Discounted interest rates will apply where installments can be collected by way of payroll deductions with support from the Employer.

REAL is not a one-size-fits-all solution. We are here for people who are ready to own, have shown financial commitment, and are looking for a practical path to long-term homeownership, starting with what they already pay in rent.

How the model works

REAL’s home loan model is built on a robust, dual-security structure that enables retirement fund members to access affordable finance, while maintaining full compliance with the Pension Funds Act and preserving the fund’s financial integrity.

Simple for members. Secure for funds.

Partnering with REAL gives funds the ability to offer its members a life-changing benefit — while maintaining fiduciary integrity and earning secure, long-term returns on capital.

A combination of a pension-backed and mortgage loans to maximise security and minimise interest rates
Funded by a sound Retirement Fund investment
Reliable repayment collection processes for ease of administration
Responsible lending practices to protect members and reduce default risk
Proven administrative track record with fully transparent access to information

Each home loan is structured as two parts:

  • Pension-Backed Loan (PBL): Typically, 15-25% of the loan is secured by a guarantee against the member’s retirement benefit, in line with the allowable provisions of the Pension Funds Act.
  • Mortgage-Backed Loan (MBL): The remaining balance is secured by a bond registered over the residential property being financed.

While the loan has two components for security purposes, the member experiences it as a single, seamless monthly repayment.

The capital for both components of the loan is provided directly by the participating retirement fund, through a structured long term debt instrument on the REAL platform. 

The Fund’s investment can be a segregated portfolio where the investment is ring-fenced per fund for loans to that Fund’s members only.  Alternatively, the investment can be pooled with other funds’ investments.

The portfolio is designed to yield predictable low-risk returns and is fully compliant with Regulation 28 as part of the Fund’s overall investment strategy.

Where possible, repayments are collected via payroll deduction, offering high reliability. Where payroll deduction is not available, REAL uses DebitCheck, a secure debit order authentication system approved by PASA (Payments Association of South Africa).

  • Members authorise the debit mandate upfront using a verified DebitCheck process
  • REAL monitors payments in real time through automated systems
  • Triggers are in place for early intervention if a payment fails
  • Members can switch to payroll deduction at a later stage

To make this transition attractive, members who move from DebitCheck to payroll deduction benefit from a lower interest rate. This incentive improves repayment reliability for the fund and reduces the cost of borrowing for the member, creating a win–win outcome.

As members’ retirement benefits grow, they may convert a portion of their mortgage-backed loan into the pension-backed loan, further strengthening the fund’s collateral position while reducing the interest cost for the member.

Applying responsible and transparent lending practices protects the member against becoming overindebted while also protecting the Fund by limiting future defaults.

  • All applicants undergo credit and affordability checks
  • Loans include mandatory life and property insurance
  • Terms are structured for long-term affordability with stable annual repayment increases
  • Full compliance with the Pension Funds Act, National Credit Act, POPIA, FICA, and FAIS

REAL’s legal agreements were developed with leading advisors, and our systems are designed to support high-volume administration while ensuring real-time risk visibility and complete transparency over all transactions and account activities.

REAL’s model is established, tested, and supported by a dedicated administration platform with a high degree of automation. Development is ongoing to further enhance efficiency, reporting, and compliance support — ensuring that new funds can be integrated smoothly and administered responsibly.

Frequently Asked Questions

If your question is not listed here, please contact us. We are here to help.

REAL Identity and Purpose

What is REAL Home Finance?

REAL is a housing finance company that helps eligible South Africans become homeowners through a structured loan, comparable to a rent-to-own model. We provide index-linked home loans to individuals who are members of retirement funds that have partnered with us. We convert rent-level affordability into structured homeownership, making it easier to buy a home without changing the members’ current budget.

Is REAL a bank?

REAL is a registered credit provider, but not a bank. We specialise in home loans by offering a unique structure that includes both pension-backed and mortgage-backed financing.

Our Model and Impact

How is REAL different from a bank or traditional lender?

REAL offers home loans through a structured model with index-linked repayments, comparable to a rent-to-own model. 

We assess credit history and affordability as part of our responsible lending process, but unlike most traditional lenders, we do not require a deposit. 

Our loans are supported by retirement funds that have partnered with us by providing the capital behind our loans and, in return, offering access to these unique home loans to their members.  

Members’ retirement benefits serve as additional security, resulting in lower interest rates.

What does ‘index-linked’ mean?

It means repayments grow at a fixed rate every year, adjusted with changes in the repo rate or prime lending rate over the lifetime of the loan. This results in a much lower initial repayment than for traditional home loans, and it gives you more stability and predictability over the long term.

Who qualifies for a REAL loan?

To qualify for a REAL loan, individuals need to:

  • Be a contributing member of a retirement fund that has partnered with REAL.
  • Have an accumulated retirement benefit of at least 15% of the loan.
  • Have a loan term that will be settled before retirement date.
  • Use the loan to finance the primary residence of the borrower.

We also assess applicants’ income, credit history, and affordability. These checks are to make sure the loan is manageable over the long term. Our goal is to help members become a homeowner in a way that is financially sustainable and responsible.

Can REAL help me if I have existing debt?

Yes, in some cases. REAL has partnered with a registered debt counsellor who may be able to assist qualifying applicants by consolidating some or all of their existing debt into the home loan. This can help reduce monthly financial strain and improve overall affordability.

However, this option is only available if you pass the required credit and affordability assessments. Each case is reviewed individually to ensure responsible lending. If you are approved for debt consolidation, we will also require a clear commitment from you to manage future debt responsibly. Our goal is to support sustainable homeownership, not short-term relief.

Trust and Compliance

Is REAL a registered credit provider?

Yes. We are fully registered and compliant with the National Credit Act and all relevant regulatory frameworks. All loans undergo thorough affordability and legal assessments before approval.

How does REAL protect my personal information?

Our customers’ and partners’ privacy and data security are very important to us. We are fully compliant with POPIA and apply strict internal controls, secure data systems, and confidentiality protocols to protect your personal information.