Younger buyers getting more bonds

Well over 60% of home loans granted are currently going to people between the ages of 30 and 50, but there has been slight increase in the number granted to those between 30 and 40 and a decline in the number granted to those between 40 and 50 over the past six months (see graph)

The latest statistics from BetterBond, SA’s biggest mortgage originator, also show that there has been a steady decrease in the percentage of loans granted to people over the age of 50 for the past year, despite the fact that from this age on, an increasing number of people are inclined to sell up their family homes and downsize to smaller properties or retirement villages.

The implication, says BetterBond CEO Rudi Botha, is that a significant number are now either using the equity built up in their large properties to pay cash for smaller homes, or perhaps delaying the move from their family homes until home prices are more favourable.

“An encouraging development in the past 12 months, however, is that the percentage of loans being granted to buyers between the ages of 20 and 30 – who are typically first-time buyers – has gone up substantially, from about 16,5% to almost 21%,” he says.

“Taking into account that the total number of loan applications has increased by 45% in the past 12 months, this indicates that there is a healthy amount of ‘new blood’ coming into the market that will, in due course, result in an upward movement of prices.”

Meanwhile, the BetterBond stats also show which areas are most active in terms of bond grants, with 80% of grants currently pretty evenly divided between buyers in Greater Pretoria, the Northern and Western suburbs of Johannesburg, the Western Cape and KwaZulu-Natal.

And according to these figures, the average loan amount currently being granted in Johannesburg North and West is now around R837 000 (compared to R840 000 a year ago) and the average in Greater Pretoria is R719 000 (R729 000), followed by the Western Cape at R700 000 (R656 000) and KZN at R645 000 (R659 000).

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us