Marginal uptick in household credit and mortgage balances growth

Posted On Tuesday, 30 April 2019 16:45 Published by
Rate this item
(0 votes)

Growth in the value of outstanding credit balances in the South African household sector.

Jacques_Du_Toit_Absa_Home_Loans

(R1 658,2 billion) was marginally higher at 6% year-on-year (y/y) at the end of March 2019 compared with 5,9% y/y at end-February this year. 

Household secured credit balances (R1 254,2 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, showed growth of 4,9% y/y up to end-March. Mortgage balances growth was slightly higher at end-March (see below), with growth in instalment sales balances (R283,9 billion and 22,6% of total household secured credit balances) at 7,5% y/y at end-March. 

Growth in household unsecured credit balances (R404 billion and 24,4% of total household credit balances) came to 9,5% y/y at end-March. General loans and advances growth was 10,5% y/y at the end of March, with credit card balances rising by 9,5% y/y and overdraft balances increasing by 6,5% y/y. 

Outstanding private sector mortgage balances (R1 428 billion and 38,1% of total private sector credit balances of R3 745,8 billion), which include both corporate and household mortgage balances, increased by 4,7% y/y up to end-March. Growth in the value of outstanding household mortgage balances (R968,7 billion and 77,2% of total household secured credit balances and 67,8% of total private sector mortgage balances) came to 4,2% y/y at end-March, marginally up from 4,1% y/y at end-February.

The value of outstanding mortgage balances is the net result of all property transactions related to mortgage loans, including additional capital amounts paid into mortgage accounts and extra monthly payments above normal mortgage repayments. 

Based on trends in the outlook for the economy, household sector finances, consumer confidence and banks’ risk appetites and lending criteria, growth in total household credit balances and mortgage balances is forecast at 5,5% y/y and 4,5% y/y respectively at the end of 2019. Real economic growth of 1,3% is expected this year, with consumer price inflation to average around 4,5% and banks’ prime lending and variable mortgage interest rates projected to remain unchanged at 10,25% per annum in the rest of the year.  

Last modified on Tuesday, 30 April 2019 16:54

Most Popular

Africrest Roars Proud With Its Latest Office To Residential Conversion - ‘The Leo’

Apr 29, 2019
 THE LEO
This month, Africrest Properties opened their latest residential conversion project up…

John Rabie launches European development company with R1,4b project in Lisbon

Apr 29, 2019
 JOHN RABIE
John Rabie, one of South Africa’s most successful property developers, has recently…

Request for Proposals for the Lease and Development of Properties

Apr 29, 2019
PRASA hereby invites proposals from potential tenants to lease and develop/upgrade…

Appeal court ruling against high interest rates charged by bodies corporate

Apr 23, 2019
MICHEAL BAUER
The recent ruling by the Supreme Court of Appeal where the body corporate of Gardens…

If a bond approval is included as a suspensive condition in an offer to purchase, does this conclude the terms ans conditions thereof?

Apr 23, 2019
MICHEAL BAUER
In most cases when a person purchases a property, he will have to apply for a mortgage…

Please publish modules in offcanvas position.