First-Time Home Buyers in South Africa | South Africa Loans Online

First-Time Home Buyers in South Africa

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First-Time Home Buyers in South Africa: Deposits, 100% Bonds and Approval Rates

Despite higher interest rates, first-time buyers are still driving South Africa’s property market, making up around 48% of home loan applications in the first half of 2026 according to ooba Home Loans. Deposits have fallen, and many buyers are applying for 100% bonds that need no deposit. The latest rate hike will increase repayments, so affordability matters more than ever, but banks are still approving most qualifying applications. The table below summarises the latest numbers, and you can compare NCR-registered lenders on saloansonline.co.za.

Measure Latest Figure Source
Average first-time buyer purchase price (Q2 2026) R1.32 million ooba Home Loans
Average first-time buyer deposit 8.9% of the price, down from 10.4% a year earlier ooba Home Loans
Average deposit in rand terms About R163,000 in June 2026, down from R230,000 in March 2024 BetterBond
Zero-deposit (100%) applications More than 56% of all applications in early 2026, and 60.2% for first-time buyers ooba Home Loans
Overall approval rate 84.5%, and almost half of those first declined by one bank were approved by another ooba Home Loans
Approval rate for 100% first-time buyer loans 80.9% in early 2026 (88.8% for cost-inclusive loans) ooba Home Loans

Tips before you apply

  • Get pre-approved first, so you know how much you can afford each month.
  • Compare offers from more than one bank, since comparing offers can improve your chances and your terms.
  • Remember that a bigger deposit is better for long-term affordability, even though it is not required.

Figures differ between providers because they use different data sets. Banks still assess your affordability and credit record, so check your credit report before applying. This article is for information only and is not financial advice.

Sources