Standard Bank says smaller properties could help aspiring buyers enter the market and build equity
- Standard Bank’s home loan disbursements rose by 17% in the first half of 2026.
- Its declining credit loss ratio suggests home owners are continuing to manage their repayments.
- The bank says bond repayments allow owners to build equity, while rent typically increases each year.
- Qualifying first-time buyers can receive a 50% discount on bond registration fees and financing of up to 108% of the property price.
For decades, South Africans have struggled with the financial decision of whether to buy a home, or rent one.
A wave of new developments and conversions of office blocks to apartments has resulted in a booming rental market, but Standard Bank’s recent data suggests many South Africans are still choosing to buy a home of their own where they can put down roots.
The bank’s latest financial results show a strong appetite for home ownership. Its Home Services unit recorded a 17% increase in home loan disbursements in the first half of 2026. The bank’s declining credit loss ratio also suggests home owners are managing their home loan repayments despite ongoing economic pressures.
“We recognise that buying isn’t for everyone, as some people might still be looking for more stability, or anticipating relocating in the near future. But for those who are in a stable life stage, home ownership becomes a viable option, and I think that’s what the activity in the first half is showing us,” says Michael Coulter, Head of Product Economics at Standard Bank Home Services.
Coulter says buying can offer long-term benefits as it allows people to build some equity into their homes as they make their monthly repayments, something that renting typically is unable to match.
“Ultimately, the value of home ownership is not just in the property itself, but in what it can enable over time. Often when people compare buying with renting they think about the difference in the immediate monthly costs. But this comparison is incomplete as it doesn’t take into account how these costs change over time, or the returns you can expect to see as the years go by,” says Coulter.
He explains that while renting can seem easier, cheaper, and more predictable in the short term, rent usually goes up every year, while bond repayments generally only change when interest rates move. “Furthermore, when you own a home, part of every monthly bond payment goes towards paying off your property, helping you build equity. This can later be used as a deposit on a larger home or another property. With renting, you may have a place to live, but after years of payments, you don’t own an asset or build wealth in the same way.”
However, Coulter acknowledges that affordability remains one of the biggest hurdles for aspiring homeowners, as many people face financial pressure over the short term. As a result, even if they see the value of buying their own home early on, many believe they need to wait years before making the commitment.
“But there are practical ways to get onto the property ladder sooner by starting with a smaller home. You can buy something small in more affordable areas and then sell that property as its value increases. You can then use the equity you’ve built to buy your dream home,” says Coulter.
Additionally, Standard Bank offers financial support to first-time home buyers. These include benefits such as a 50% discount on bond registration fees, and financing of up to 108% of the property price to help cover related transfer and registration costs. Standard Bank also provides the tools to help people understand what they can afford.