Household credit and mortgage balances

Posted On Tuesday, 03 July 2018 19:20 Published by
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Growth in the value of outstanding credit balances in the South African household sector (R1 574,0 billion) was relatively stable at 4,2% year-on-year (y/y) up to the end of May 2018 compared with 4,1% y/y at end-April as a result of little change in both secured and unsecured credit balances growth.

Household secured credit balances growth, which includes mortgage, leasing and instalment sales balances, was only marginally higher at 3,9% y/y to reach a total value of R1 202,5 billion (76,4% of total household credit balances) in the first five months of the year from growth of 3,8% y/y up to end-April. Mortgage balances growth was unchanged (see below), with growth in instalment sales balances (R265,3 billion and 22,1% of total household secured credit balances) that increased to 6,2% y/y up to end-May from at 5,7% y/y at end-April.

Growth in the value of household unsecured credit balances (R371,5 billion and 23,6% of total household credit balances) increased to 5,3% y/y at the end of May from 5,1% y/y up to end-April. General loans and advances balances (mainly comprising personal loans and micro finance and with a share of 58,7% in unsecured balances), increased by 5,7% y/y to R218,0 billion up to the end of May, with growth in this component of unsecured  credit balances remaining on an upward trend since bottoming at 2,7% y/y in December last year.

Outstanding private sector mortgage balances (R1 374,4 billion and 39,2% of total private sector credit balances of R3 504,5 billion), which include both corporate and household mortgage balances, increased by 4,7% y/y up to the end of May this year. Corporate mortgage balances (R438,9 billion and 31,9% of total private sector mortgage balances) increased by  7,8% y/y up to end-May. Growth in outstanding household mortgage balances (R935,5 billion, with a share of 77,8% in total household secured credit balances and 68,1% in total private sector mortgage balances) remained unchanged at 3,3% y/y up to end-May. 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.

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

  • Growth in the value of outstanding credit balances in the South African household sector (R1 574,0 billion) was relatively stable at 4,2% year-on-year (y/y) up to the end of May 2018.
  • Household secured credit balances growth was only marginally higher at 3,9% y/y in the first five months of the year from growth of 3,8% y/y up to end-April.
  • Household unsecured credit balances growth increased to 5,3% y/y at the end of May from 5,1% y/y up to end-April.
  • Growth in household mortgage balances (R935,5 billion) remained unchanged at 3,3% y/y up to end-May.
  • Growth in both household credit and mortgage balances is forecast at around 4% for the full year of 2018, driven by trends in and prospects for the economy, household sector finances and consumer confidence.
Last modified on Thursday, 05 July 2018 20:42

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