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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of a mortgage bond as a form of debt security 
SAQA US ID UNIT STANDARD TITLE
13418  Demonstrate knowledge and understanding of a mortgage bond as a form of debt security 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for all learners in the field of mortgage finance as provides an introduction to the application of concepts, terms, and legislation relevant to a mortgage bond in the context of mortgage finance.

Persons credited with this unit standard will be able to, define a mortgage bond, evaluate a mortgage bond over immoveable property as security for a loan, evaluate different types of properties in terms of the requirements for good security and demonstrate knowledge and understanding of securities in the context of mortgage finance. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that the learner has an understanding of property and ownership concepts associated with Mortgage Finance, and a general understanding of securities in lending relating to the concepts, principle and documentation. Learners should be competent in Communication at level 3. 

UNIT STANDARD RANGE 
N/A 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Define a mortgage bond 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The concept of what a mortgage bond is and why it is required in relation to advancing finance for immoveable property is explained in own words according to general legal principles and banking policy and practice. 

ASSESSMENT CRITERION 2 
2. The features of a mortgage bond are specified according to the legal definition and general banking policy and practice. 

ASSESSMENT CRITERION 3 
3. The parties to a mortgage bond are identified and their role explained according their legal rights and obligations. 

ASSESSMENT CRITERION 4 
4. The typical content and terms of a bond document is described according to general banking policy and practice. 

ASSESSMENT CRITERION 5 
5. The concept of standard conditions in relation to a mortgage bond is explained according to general banking policy and practice. 

ASSESSMENT CRITERION 6 
6. The difference between a mortgage bond and a mortgage loan is explained in own words. 

SPECIFIC OUTCOME 2 
Evaluate a mortgage bond over immoveable property as security for a debt/loan 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. A mortgage bond over immovable property is evaluated according to the principles of good security in line with the financier's lending policy. 
ASSESSMENT CRITERION RANGE 
Establishing/ proving ownership, obtaining custody or control of the asset, ease of conversion to cash to realise the debt, establishing a fair value, stability of value over the term of finance, incurring liabilities linked to the asset. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The risks associated with a mortgage bond as a form of security are identified and explained according to the principles of good security and in line with the financiers lending policy. 

ASSESSMENT CRITERION 3 
3. The legal benefits/controls associated with a mortgage bond are outlined according to the legal rights and responsibilities of the parties to the bond and the requirements for registration of a bond. 

ASSESSMENT CRITERION 4 
4. The legal recourse in the event of default is explained according to the general practice and policy associated with foreclosure of a loan. 

SPECIFIC OUTCOME 3 
Evaluate different types of properties in terms of the requirements for good security 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. A standard home loan is evaluated according to the principles of good security and in line with the financiers lending policy. 

ASSESSMENT CRITERION 2 
2. A plot of vacant land is evaluated according to the principles of good security and in line with the financiers lending policy. 

ASSESSMENT CRITERION 3 
3. A sectional title property is evaluated according to the principles of good security, in line with the Sectional Titles Act and the financiers lending policy. 

ASSESSMENT CRITERION 4 
4. A property with a registered servitude is evaluated, and the implications of the servitude in relation to providing finance for the property explained according to the principles of good security and in line with the financiers lending policy. 
ASSESSMENT CRITERION RANGE 
Personal and preadial servitude. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 5 
5. Examples of property that would not be considered good security are identified and explained according to the principles of good security. 

ASSESSMENT CRITERION 6 
6. The specific risks and benefits of different types of property are explained according the analysis of suitability of the properties as security for a loan. 

SPECIFIC OUTCOME 4 
Demonstrate knowledge and understanding of securities in the context of mortgage finance 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The concept of what security and how much security is required in a mortgage finance relationship are explained with the use of illustrative examples according to the financiers lending policy. 

ASSESSMENT CRITERION 2 
2. The concept of the principal security is defined and explained in own words according to general banking policy and procedure. 

ASSESSMENT CRITERION 3 
3. The concept of the collateral security is defined and explained in own words according to general banking policy and procedure. 

ASSESSMENT CRITERION 4 
4. The conditions where collateral security would be required are explained according to general banking lending policy. 

ASSESSMENT CRITERION 5 
5. The different types of collateral security commonly used in mortgage-finance transactions are specified and their usefulness explained according the financiers lending policy. 

ASSESSMENT CRITERION 6 
6. The concepts and principles are illustrated through an analysis of a working example according to the financiers lending policy. 
ASSESSMENT CRITERION RANGE 
What security required, how much security required, principal and collateral security required.
 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1 Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2 Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3 Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
The knowledge acquired in this standard relates to applying the concepts of good security to be able to understand the kind of protection a mortgage bond provides a lender and gives some insight into the lenders policy and procedures with regard to this type of finance. The criteria against which this knowledge is evaluated are expressed in the standard. 

UNIT STANDARD DEVELOPMENTAL OUTCOME 
N/A 

UNIT STANDARD LINKAGES 
N/A 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
In this standard the learner demonstrates the ability to identify and solve problems when the risks associated with a mortgage bond as a form of security are identified and explained according to the principles of good security and in line with the financiers lending policy. 

UNIT STANDARD CCFO COLLECTING 
In this standard the learner demonstrates the ability to collect, organise and critically evaluate information when a property with a registered servitude is evaluated, and the implications of the servitude in relation to providing finance for the property explained according to the principles of good security and in line with the financiers lending policy. 

UNIT STANDARD CCFO DEMONSTRATING 
In this standard the learner demonstrates the ability to demonstrate an understanding of the world as a set of related systems when the legal recourse in the event of default is explained according to the general practice and policy associated with foreclosure of a loan. 

UNIT STANDARD ASSESSOR CRITERIA 
N/A 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

UNIT STANDARD NOTES 
Additional information:

Legal requirements:

All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 
Elective  59097   Further Education and Training Certificate: Real Estate  Level 4  NQF Level 04  Reregistered  2023-06-30  SERVICES 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
1. Absa Learning & Development 
2. Bidvest Bank 
3. Chartall Business College 
4. Cornerstone Performance Solutions (Pty) Ltd 
5. Felix Risk Training Consultants 
6. Firstrand Bank - Benmore 
7. Nedbank Ltd 
8. The Facilitation Workshop 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.