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Irregular income earners can still own a home with some creative home financing

Irregular income earners can still own a home with some creative home financing
Marthinus Botes
By Marthinus Botes
6 Feb 2025
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Traditional forms of home financing are built around traditional kinds of earning, but there are still options for those who don’t get salaries. By Marthinus Botes

To be an irregular earner in society today is no longer wholly irregular. Although mortgages and other traditional models of home financing were developed with steady incomes in mind, there is a growing market of non-salary earners, such as gig workers, freelancers and those who earn commission.

“Recent data shows that the base of informally self-employed customers is growing by about 6% per year, with those holding home loans increasing at a slightly faster rate of about 7% per year,” said Ariel Eliasov, the head of credit at FNB home and structured lending.

“In contrast, the base of traditionally salaried customers has been decreasing by roughly 2% per year, highlighting the growing prevalence of variable income earners in the market.”

Read more: How young South Africans are hustling to beat the cost-of-living crisis

Options for irregular earners


Many financial institutions provide work-arounds for individuals looking for home financing without a traditional salary:

Financial institutions want to see that you have a steady stream of income, but this does not necessarily require evidence of a salary per se. Instead, alternative documentation such as tax returns, business annual financial statements, bank statements, invoices and contracts can be used to show the bank that you have a consistent cash flow, according to Nondumiso Ncapai, managing executive for Absa home loans.

A good credit rating can go a long way when applying for home financing with an irregular income, as it shows that you are responsible and trustworthy. “A strong credit history and evidence of consistent payments on existing debts, rental payments and other financial commitments can significantly improve the chances of securing financing,” Ncapai said.

Instalment sale agreements are an emerging trend among irregular earners, according to Renier Kriek, managing director at Sentinel Homes. Rather than borrowing money from a financial institution, buying a property with a single lump sum and then paying back the financial institution via monthly payments, an instalment sale agreement acts like a hire-purchase agreement. You pay the seller (or a third-party company) in monthly instalments and gain ownership of the property once the final payment has been made. It is a nifty way for irregular earners to pay for a home, without the seller experiencing much risk.

“It is apparent that an instalment sale agreement offers better advantages, more protection and greater flexibility to those who dream of owning a home without sacrificing their financial independence,” Kriek said.

Extra hurdles


Despite all the tricks that irregular earners have at their disposal, there are still some hoops that gig workers, freelancers and business owners might have to jump through:

  • Higher interest rates may be an unfortunate byproduct of an irregular income, according to Ncapai. Banks can increase interest rates on a home loan to offset the inherent risk associated with fluctuating earnings;

  • Higher deposits on home loans are another bullet that irregular earners may have to bite. They also serve to manage the risk inherent in granting credit to individuals without fixed salaries; and

  • Income variability is unattractive to many financial institutions. You might be comfortable going without an income one month and closing a big deal the next, but it may seem too risky for banks. “People earning an irregular income may still apply for a normal home loan. However, the assessment will consider the variability of the income over an extended period, so additional documents and a healthy income surplus may be required,” Eliasov said.


The development and implementation of financial services that can accommodate non-traditional cash flows and income are still finding their feet.

“Applications from individuals with non-fixed incomes remain relatively low compared with those with more traditional forms of income,” Ncapai said. “This trend is understandable, given that home loans are typically long-term financial products that require a significant commitment.

“The market for non-fixed-income earners is still in the process of adapting to the unique demands and criteria associated with securing such loans.” DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.

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