Continued steady growth in household credit and mortgage balances

Steady growth of 6,7% year-on-year was recorded in outstanding credit balances (R1 717,9 billion) in the South African household sector since August this year up to the end of October.

Growth in both secured and unsecured household credit balances was on a gradual upward trend in recent months. Growth in the value of outstanding household mortgage balances (R1 002,4 billion) increased somewhat further to 5,1% year-on-year at end-October from 5% year-on-year at end-September.

Macroeconomic trends, the state of household finances, consumer confidence and property market sentiment in general will remain the key drivers of household credit and mortgage balances growth, which is forecast at around 7% and 5% respectively by the end of 2019.