Lobola, marriage and homeownership – navigating the implications

Lobola, marriage, and homeownership are deeply interconnected, shaping both cultural traditions and the financial decisions of couples. In many African cultures, the conclusion of lobola negotiations marks a major milestone.

Lobola symbolises the formal union of two families. While this deeply rooted tradition is widely embraced, fewer people understand its impact on homeownership. Customary marriage, or marriage in community of property, can affect both current and future property ownership.

The significance of lobola and marriage

Lobola is widely practiced. Each culture has its own set of rules and practices. Commonly known as ‘bride price’, lobola negotiations occur between the families of the groom and bride.

The groom’s family undertakes payment, traditionally in cattle, but now often in money equivalent to the value of cattle. This payment is made to the bride’s family as consideration for a customary marriage. It serves as a token of gratitude and an introduction to the family.

Once negotiations are concluded and customs observed, the couple is married under the Recognition of Customary Marriages Act (1998). This Act provides them with the same legal status as civil marriages. Civil marriages occur in a church or in front of a marriage officer and require a marriage certificate. Customary marriages, however, follow community customs and offer greater flexibility.

However, what isn’t widely known or discussed in customary marriage is an important legal implication. Once lobola negotiations are concluded, and without an antenuptial contract, couples are married in community of property. This means that assets, like a home or car, and liabilities, like debt, are equally shared.

Lobola, marriage and homeownership

When buying a home or splitting assets, couples married in community of property must consider several important factors.

Whether married in or out of community of property (with or without accrual), the type of marriage contract matters. The contract determines whether purchasing and financing a home needs both spouses’ consent.

Buying a home in community of property

In community of property marriages, both parties must apply jointly for a home loan, whether as first-time or second-time buyers. The home will then be registered in both parties’ names.

The importance of couples understanding how being married in community of property impacts legal obligations and access to credit is highly stressed.

Without proper knowledge and planning, this legal arrangement may complicate decisions around property ownership, debt management, and financial security. Navigating this aspect requires thoughtful consideration and pre-approval of a home loan.

The home loan pre-approval process

During pre-approval, both spouses’ credit scores and affordability are assessed to determine loan eligibility. Credit scores of 610-plus are required for both parties. A credit score reflects credit behaviour and repayment reliability.

For those without a credit score or with a poor credit score, steps can be taken to improve it. This includes repaying debts on time and in full. Afterward, individuals can check their updated credit scores through our Bond Indicator every three to six months.

Once affordability and credit scores are verified, a pre-qualification certificate is issued. This certificate is valid for 90 days.

Benefits of joint home loans

A benefit of joint home loans: the possibility of securing a larger loan. A joint home loan may be approved for a larger amount because both incomes are combined. It also reassures banks, as debt obligations are shared by two people.

Couples may also receive competitive offers from banks when shopping around. However, a poor credit score or low affordability from one spouse may hinder loan approval.

In cases of death or divorce, assets are divided equally. If a couple has not registered their customary marriage and wishes to divorce, they need a court-issued divorce order. Affidavits proving their marriage will also be required.

Purchasing a home before or after lobola negotiations?

Like civil marriages, there is no right or wrong. It comes down to personal preference. For some, owning a home before lobola negotiations demonstrates financial stability and the ability to provide. Others prefer to purchase a home together after starting their marriage journey.

We emphasize the importance of understanding how being married in community of property affects home loan applications. Homeownership is an exciting journey. Couples should work with trusted providers to complete all mandatory checks before applying for a home loan.