South Africa’s property market currently presents some excellent opportunities for first-time buyers, and those who take the time to explore the special home loan packages available to them could find themselves stepping on to the property ladder sooner than they think.
“Many young people are unaware of what financing options are available to them as first-time buyers and as a result are waiting longer than necessary to become homeowners,” says Stephen Whitcombe, MD of the FIRZT Property Group.
“The big lenders all have tailored bond programmes that offer first-time buyers loan-to-value (LTV) ratios of up to 108%, with some extending to 110% for properties under specific purchase price limits. This means that they will lend more than the value of the property to assist buyers to cover additional purchase costs such as legal and transfer fees and bond registration costs, so that young buyers don’t have to wait to save up cash for these expenses.
“Some of these offerings also include discounts on bond registration fees, interest rate concessions for buyers who already have accounts with the same bank and free homeownership training. Additional incentives are also available for certain segments, such as buyers in the affordable housing category or who earn less than R34 000 a month per household.”
This comes at a time, he notes, when the broader economic backdrop in SA is increasingly supportive of property ownership, despite concerns about fuel prices and possible interest rate increases. “The dramatic surge in the gold price over the past two years from under $2000/ ounce to around $4600 this month, along with increases in the price of other precious and rare metals, has delivered a substantial economic boost to SA. It has not only enhanced the profitability of the mining sector, but improved export revenues and strengthened the Rand.
“Indeed, increased mining revenues have contributed an extra R31bn to National Treasury to help it lower the country’s debt burden, and the stronger Rand has so far shielded SA from the worst of the fuel price pressures linked to the ongoing conflict in the Middle East.”
Meanwhile, notes Whitcombe, SA continues to attract higher levels of foreign investment, regarded as essential for economic growth and job creation. According to the Reserve Bank, foreign direct investment (FDI) inflows topped R41bn in Q4 2025 – the highest level since Q2 2023 – while more than R50bn in pledges were recorded at the 6th SA Investment Conference early this year.
“In response, business confidence rose to a 13-year high of 47 points in the first quarter of this year, from 44 points in the fourth quarter of 2025, while the consumer confidence index edged up two points, and we see daily how the improved economic environment is translating into increased momentum in the residential property market.
“Bond application volumes are rising and listing times are decreasing, particularly in the mid- to upper-value segments, but activity at the lower end of the market has not accelerated to the same extent, and we’re concerned that first-time buyers are missing out.”
He says too many aspiring homeowners still assume they need a large deposit or exceptional income to qualify for a bond, which is no longer necessarily the case. “In fact, banks are actively competing for first-time buyer business, but it is true that the overall landscape of what’s on offer is complicated and can be confusing.
“The first-time buyer home loan packages vary from lender to lender with differing limits on purchase price, buyer age and income and types of property that qualify, so we strongly recommend that prospective buyers consult a reputable mortgage originator like BetterBond to establish exactly what their individual options are.
“We are also urging them to do this sooner rather than later. As economic conditions continue to stabilise and boost confidence, the competition for well-priced entry-level homes is likely to intensify and make it more costly to get into the market.”
