This is according to bond originator, BetterLife Home Loans, which revealed that buyers aged 20 to 30 paid an average deposit of around R90,000.
“[This] puts their average bond at R682,000 and their average monthly repayment at just over R6,800,” said BetterLife CEO, Shaun Rademeyer, noting that buyers aged 50 to 60, however, paid an average of R388,000 as a deposit, taking their average bond down to R949,000 and monthly repayment to R9,475. “The average deposit size for over-60s currently is R674,000, which puts their average bond at just over R1m and average monthly repayment at around R10,000.”
Rademeyer said their stats reflected rising percentages of home loans that are being granted in higher-price categories, revealed in the 12 months to end-May, where 38.7% of all home loans granted were for more than R1m, compared to 36,5% in the previous 12 months.
“At the same time younger buyers are clearly starting to struggle now to get on to the first rung of the property ladder,” said Rademeyer, noting that BetterLife statistics show that in the past 12 months, the percentage of home loans granted for between R500,000 and R1m, which is the space mostly occupied by younger buyers, has fallen from 40.2% to 38.6%.
“However, it is also worth noting that this is not due to a decline in demand, as the percentage of home loan applications being made by first-time buyers has actually increased over the past 12 months from 46.1% to 47.5%. But the banks are becoming increasingly cautious when it comes to approving new loans and are applying very strict credit qualification criteria.”