Buying property is one of the most important financial decisions one will make throughout their life journey. It involves a process that demands careful planning, diligent research, and attention to key factors that can ‘make or break’ your property buying prospects.
Image: Freepik
As many South Africans consider buying their first property, the journey to home ownership presents a myriad of complexities that require strategic planning and a thorough understanding of the financial landscape. The recent cut in interest rates has reignited hope for first-time buyers, offering a glimmer of optimism in a fluctuating economy, but navigating the intricacies of home finance can still be daunting.
On January 30, 2025, the South African Reserve Bank announced a 25-basis points interest rate cut, building on similar cuts in September and November of the previous year.
This reduction brings the prime lending rate down to 11%, a historically favourable position that could benefit potential homeowners.
The cyclical nature of interest rate adjustments has created a burgeoning opportunity for first-time buyers, which financial experts urge prospective homeowners to seize.
“It’s important for home finance applicants to intentionally take the time to fully understand the process and requirements,” explains Mfundo Mabaso, Product Head at FNB Home Structured Lending.
Despite favourable interest rates, many first-time buyers may find the requirements for home loans to be daunting. FNB data shows that between 2020 and 2024, most first-time buyers were between the ages of 23 and 35, emphasising the importance of foresight and preparedness in this significant financial decision.
With 55% of first-time buyers reporting purchases in Gauteng, and a majority of applicants being Personal Banking customers, the demographic landscape of homeownership is evolving.
FNB's data highlights that 53% of applications are made by males, yet an increasing number of black families are entering the market.
Ester Ochse, Product Head at FNB Integrated Advice, reiterates the importance of consistent savings, advising potential homeowners to establish realistic monthly targets to build their deposits.
As the South African economy strives for recovery, hopeful homeowners are reminded that while opportunities abound, they require a well-prepared approach.
Those who qualify financially and fulfil all requirements may find themselves closer to realising their dreams—whether it be a first home or an astute investment property.
Related Topics: