Advice and Opinion

Stable growth household credit and mortgage balances

The value of outstanding credit balances in the South African household sector increased by 5,9% year-on-year to R1 653,3 billion up to the end of February 2019 (3,9% year-on-year at end-February 2018), with growth in total credit balances as well as secured and unsecured credit balances remaining unchanged from end-January.

Growth in the value of outstanding household mortgage balances (R968,1 billion and 77,3% of total household secured credit balances and 68% of total private sector mortgage balances) came to 4,1% year-on-year at end-February, also unchanged from end-January.

Macroeconomic factors and trends in household finances, consumer confidence and banks’ risk appetites and lending criteria will be the main drivers of the demand for and growth in household credit, including mortgage advances, with credit balances growth expected to remain much in line with recent trends.