Cape Town - Mortgage loans of 100% - in other words for the full value of the home being purchased - are fairly common these days, according to John Loos, household and property sector strategist at FNB.
Based on FNB's deeds data, he estimates this to be the case in 41.5% of total bonds taken by individuals in the second quarter of 2016. This is higher than the 2009 low point, but far down from the 2006 boom time peak, according to Loos. The figure is even higher in the more affordable segments of the market. Of all the loan-to-purchase price ranges 100% 109% home loans are the most common.
A high point of 65% was reached in the second quarter of 2007, for instance, compared to the post-boom low of 25.4% reached in the third quarter of 2009.