The mortgage originator’s numbers demonstrate that first-time buyers accounted for 47.6% of home loan applications in the 12 months to end-June 2017.
“They, however, only obtained 29% of all home loan approvals, suggesting that even large deposits are not sufficient to persuade the increasingly cautious banks to approve loan applications if the prospective borrower doesn’t have an impeccable credit record and sufficient disposable income,” said BetterBond CEO, Shaun Rademeyer, noting that the average home price in the year to end-June was R1,095m. “The average approved bond size in the year to end-June was R868,000. This means that the average deposit paid was almost 21% of the purchase price – or R227,000.”
* The first-time buyer represents household income