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Even with a R227,000 deposit, banks still cautious

unsureThe average first-time buyer* earns around R37,000 a month, according to statistics by  BetterBond (previously BetterLife Home Loans).

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


David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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