Transunion found that the average South African owes\u00a0R488,931 <\/strong>on their home loan.<\/p>\n “Home loan originations, as well as the average loan amount to new customers, remained flat YoY (0.5% and 1.7% respectively),” TransUnion said.<\/p>\n “Total account volumes were also flat. As consumers grapple with stretching their finances, large, long term commitments such as purchasing a home, are often delayed, especially in the face of economic uncertainty.”<\/p>\n TransUnion also warned that banks remain uncertain about the possibility of the expropriation of land without compensation, which is believed could have dire consequences on the industry.<\/p>\n “These developments are important to monitor, as president Ramaphosa deliberates structural policy reforms in the coming months,” it said.<\/p>\n Vehicle and Asset Finance<\/strong><\/p>\n Transunion found that the average South African owes\u00a0R180,962 <\/strong>on their vehicle.<\/p>\n “In Q1 2019, total VAF balances grew YoY at the slowest pace (0.2%) seen in the last two years, as a result of a decrease in originations,” TransUnion said.<\/p>\n “The decline originations could be more than lenders tightening their credit granting criteria; it is likely a result of decreased consumer affordability despite the fact that vehicle prices have declined YoY for both new and used vehicles.”<\/p>\n Given the current economic environment, an increasing number of VAF borrowers are also not meeting balloon payments at the end of their loan terms, TransUnion said.<\/p>\n Clothing accounts<\/strong><\/p>\n Transunion found that the average South African owes\u00a0R2,087 <\/strong>on their clothing account.<\/p>\n “In 2018, clothing retailers lobbied against the 2015 NCA regulation which required proof of income documentation in order to perform affordability assessments \u2013 retailers were the hardest hit by this regulation and suffered a significant decrease in credit granted volumes,” TransUnion said.<\/p>\n “In 2018, the court ruled in the retail industry\u2019s favour and lifted this stipulation, and credit providers reverted back to internal assessment processes. In essence, the retail industry was reset, resulting in volatile YoY comparisons.”<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/06\/Home.png\")
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