MyProperty Home Loans has released its latest home loan statistics, comparing March 2024 to March 2025, revealing significant shifts in the South African property market. Notably,“First-time buyers now make up 72.71% of home loan applications”. Up from 71.34% the previous year, indicating a growing confidence among new entrants.
While the March National Budget created many pain points for South African households, it also gave homebuyers the ‘gift’ of increasing the transfer duty exemption threshold. With the reduced interest rate and no transfer duty below R1.2 million, the market is more favourable for first-time buyers compared to a year ago,
The average purchase price for first-time buyers increased from R1,188,663 to R1,215,522, while the average approved bond rose from R1,029,192 to R1,567,694. Despite these increases, the average deposit for all buyers saw a substantial rise from R159,471 to R352,173.
These trends align with broader market observations. The average age of first-time buyers has increased to 39, reflecting a shift towards older individuals entering the market.
The prime lending rate decreased from 11.75% to 11%, offering some relief to borrowers. Furthermore, own bank bond acceptance rates improved slightly from 52.24% to 52.61%, indicating a more favourable lending environment.
“The data reflects a resilient property market with first-time buyers leading the charge,” said Michael-Anne Abrahams of MyProperty Home Loans. “With improved lending conditions and increased consumer confidence, now is an opportune time for prospective homeowners to enter the market.”
For more information or to start your home loan journey, visit myproperty.co.za/home-loans.
