Deposit Requirements Down

Some excellent news for prospective homebuyers – and their agents – this month is that almost 40% of all loans granted through BetterBond in April (39,67%) were for the full amount of the purchase price (100% bonds), compared to only 30% of loans granted a year ago.

In addition, the average percentage of purchase price required as a deposit by the remaining 60% of borrowers showed a year-on-year decline in every price category (see graph).

All these statistics include the affordable market sector.

Meanwhile our figures also show that theEastern Capeis currently the cheapest place to buy residential property, while the suburbs to the north and west ofJohannesburgare the most expensive areas.

The figures show that in the areas that BetterBond operates, April saw the smallest home loans, on average, going to buyers in the Eastern Cape (R552 081) followed by the Free State and Northern Cape area (R556 847).

As the table shows, Johannesburg south and east came in next, followed by KwaZulu-Natal, the Western Cape and Pretoria, with borrowers in the Johannesburg north and west area receiving the biggest loans.

 The order of these numbers also corresponds pretty closely to the order of the actual home price figures for these areas recently released by Absa for the first quarter of this year.

Avg loan

(BetterBond)Annual change %Avg price

(Absa)Avg deposit % required (BetterBond) E Cape552 0817,8860 51313FS & NCape556 847-2,2924 00013Jhb S&E619 62525952 92313KZN652 57414,3936 34613W Cape728 3064,71 174 65017Pretoria789 3200,21 190 75417Jhb N&W851 090-5,91 445 87517

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About BetterLife Home Loans

Since 2003 BetterLife Home Loans has been SA’s No.1 Bond Originator, handling the entire home loan application process on your behalf – free of charge! Our aim is still to source the best interest rate for you by submitting your home loan application to all the major banks. There is no easier way to apply for a Bond or Home Loan in South Africa!

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