Rise in home loan grants
SA's property market ready for 'take-off' as home loan grants rise
Housing demand has continued to gain momentum since the start of the year and in the third quarter, the number of applications for home loans was at its highest level in more than three years.
This is according to latest statistics from BetterBond which represent 28% of all new mortgage bonds registered in the Deeds Office annually. In addition, says CEO Carl Coetzee, the total number of bonds actually granted was a whopping 19.2% up in the 12 months to end-September compared to the previous 12 months.
And an increasing percentage of those home loan grants are going to first-time buyers, which is an indication that the overall size of the real estate market in SA is growing. The BetterBond statistics* show that 38.3% of bond grants went to first-time buyers in the 12 months to end-September, compared to 32.6% in the previous 12 months.
This aligns with figures that show significant increases in the percentages of bonds being granted in the lower price categories usually favoured by first-time buyers, the most notable being a 6.3% increase year-on-year in the percentage of bonds granted for homes priced at between R1 million and R1.5 million.
Nevertheless, he notes, the biggest percentage (44%) of bonds granted in the 12 months to end-September was for homes priced at between R500 000 and R1 million. By contrast, only 4% of bonds granted were for homes costing more than R3 million.