MOST FIRST-TIME BUYERS DON’T USE THEIR OWN BANK FOR BONDS

FIRST-TIME buyers appear to have paid slightly less for their homes than they would have a year ago, according to statistics from Comcorp Mortgage Software.

The data revealed that last month, the average price paid by first-time buyers was R955 135 compared to R963 625 in February last year.

The average approved bond last month was just over 92% at R880 949, with the average deposit just under 8% at R74 186. The same period last year saw the average bond amount at R882 156 and a deposit of R81 469.

The data also shows that the average loan to value ratio to firsttime buyers, both last month and last February, was 93%.

This ratio is what lenders use to determine how much risk they are taking on with a secured loan.

Other Comcorp findings for last month include:

• The average age of first-time bond applicants was 36.

• Only 25% of approved bonds were taken up with the applicants’ own bank.

• First-time buyers accounted for 72.69% of property purchases.

THE majority of those who bought property last month were first-time buyers. PICTURE: KINDEL MEDIA/PEXELS