Uptick in household credit, mortgage balances growth in early 2018

Outstanding credit balances in the South African household sector amounted to R1 580,3 billion at the end of June 2018, with growth that measured 4,5% year-on-year in the first half of the year, compared with 4,2% year-on-year at end-May and 2,9% year-on-year  a year ago.

Growth in outstanding household mortgage balances (R940,0 billion, with a share of 77,8% in total household secured credit balances and 68,1% in total private sector mortgage balances) increased to 3,6% year-on-year up to end-June from 3,3% year-on-year at end-May and 3,1% year-on-year at the end of June last year.

Growth in household credit is forecast at around 4,5% for the full year, with mortgage balances growth projected at 3,5% for the year, driven by trends in and prospects for the economy, household sector finances and consumer confidence.

Home owners’ mortgage loan repayment patterns on primary residences improved in some instances in the twelve month period from mid-2017 up to the middle of this year, but divergent trends were evident across income groups over this period.

Read more here: Absa Credit and Mortgage Advances – June 2018