The product was born out of frustration with the world-wide recession, the strict lending criteria of the financial institutions and the implementation of the National Credit Act.

Many buyers, even those with a past bad credit record, may have the income to afford to buy a property, but cannot obtain a mortgage loan.

Financial institutions/banks will apply the following criteria when considering the approval of a loan:

  • availability of a deposit
  • the "affordability test"
    • as implemented under the National Credit Act and
    • 1/3 of your income
      * credit rating

Rent2buy, supported by r2b Rental Insurance, was introduced to assist a prospective buyer to build up a record of affordability over a period of time.

With Rent2buy, supported by r2b Rental Insurance, you:

  • Buy your property now, and fix the price, in a buyer’s market
  • Pay only 1 or 2 month’s rental deposit, compared to the standard 10% deposit
  • Rent the property for the duration of the lease (9-24 months or longer)
  • Build-up an affordability track record while you are renting
  • Are not forced to buy the property, but have the opportunity to buy
  • Apply for a bond – only prior to the exercise of your option
  • Take transfer of the property (10 - 24 months) later while the rental income of the landlord is secured by a national insurance company, whose product takes care of all rental administration:
    • Pays the rent to the landlord on the 1st day of each month
    • Covers outstanding rent due for 3 months (on default by a tenant)
    • Covers all legal costs between the landlord and tenant (in case of eviction and collection of such costs and rental).