South Africa’s residential property market is experiencing a noticeable shift, with more buyers turning to zero-deposit home loans as affordability pressures continue to shape purchasing decisions.
Image: Tracy Adams.
Saving for a deposit while also covering transfer costs, bond registration fees and other expenses has become increasingly difficult for many South Africans.
As a result, zero-deposit and cost-inclusive home loans are becoming an important pathway into property ownership, says Vermaak Properties.
The estate agency says South Africa’s residential property market is experiencing a noticeable shift, with more buyers turning to zero-deposit home loans as affordability pressures continue to shape purchasing decisions.
According to the latest data from ooba Home Loans, more than 56% of all home loan applications submitted during the first four months of 2026 were for 100% home loans, meaning buyers required no deposit to purchase a property.
Last week, Rhys Dyer, CEO of the ooba Group, said that over 56% of all home loan applications received in the first four months of 2026 fell into the zero-deposit category - two percentage points higher year-on-year.
He said this data may underline the lack of available deposits among homebuyers, but it also shows the banks’ willingness to enable and empower homebuyers in a tough economic climate.
“For some, saving up for a deposit and covering the additional associated costs relating to a home loan are no longer viable. However, they still have the affordability and income to repay their loan on time each month, and this is where these types of loans help reduce the barrier to entry,” Dyer said.
This marks a record high and reflects a growing trend among both first-time and repeat buyers who may have the income to afford monthly repayments, but not the upfront savings traditionally needed for a deposit and transaction costs, says Vermaak Properties.
It says that first-time buyers remain the strongest drivers of this trend.
“Between January and April 2026, 60.2% of first-time buyer applications were for 100% home loans. Demand for cost-inclusive home loans has also grown significantly, rising from around 3% of applications in 2021 to nearly 16% in 2026.”
Encouragingly, the estate agency says banks are not only receiving more applications for these types of loans but are also approving them at strong rates.
It says approval rates for first-time buyers applying for 100% home loans have increased from 69.2% in 2016 to 80.9% in early 2026, while cost-inclusive home loan approvals have reached 88.8%.
“This points to a banking sector that remains committed to supporting qualified buyers and strengthening access to homeownership, particularly in a market where affordability remains one of the biggest challenges.”
The company says the trend is also extending beyond first-time buyers. It adds that repeat buyers are increasingly applying for 100% finance as slower house price growth in certain regions has reduced the equity many homeowners would traditionally use as a deposit when upgrading or relocating.
For repeat buyers, approval rates are described as also strong, with 100% home loan approvals reaching 87.5% and cost-inclusive loan approvals climbing to 91.3% during the first four months of 2026.
Buyers still need to meet affordability requirements and generally require a healthy credit profile to qualify.
According to Vermaak Properties, while zero-deposit home loans can make property ownership more accessible, responsible lending remains key.
The estate agency says buyers still need to meet affordability requirements and generally require a healthy credit profile to qualify. Prequalification remains an important first step, helping buyers understand what they can realistically afford before entering the market, it adds.
For the property sector, this shift is said to be significant. It is said to show that while affordability pressures remain, banks are playing an active role in supporting market activity and helping qualified buyers move forward with confidence.
The estate agency buying a home is one of the biggest financial decisions a person can make. It adds that whether one is a first-time buyer, upgrading their current home, or exploring their financing options, having the right guidance can make all the difference.
“With more accessible lending options available, now may be the right time for qualified buyers to take the next step toward homeownership.”
According to Dyer, while these figures reflect current bank lending behaviour, these loans also act as a strategic tool to help stimulate demand, particularly at a time when affordability pressures are keeping many potential homebuyers sidelined.
He added that internal credit performance has also remained resilient, with payments in arrears by home loan applicants contained and household balance sheets among the middle-income segment appearing stable.
“This positive trend is testament to the robust vetting and prequalification processes applied by companies like ooba Home Loans, ensuring that homebuyers are approved for an amount that is realistically aligned with what they can afford,” Dyer said, adding that homebuyers require a strong credit score of 661-plus to be considered for zero-deposit and cost-inclusive loans.
Little evidence of a major shift in lending behaviour in the ongoing geopolitical uncertainty.
When asked whether banks might change their stance in response to ongoing geopolitical uncertainty, including conflict in the Middle East, Dyer says there is currently little evidence of a major shift in lending behaviour, although lenders may become more cautious should global instability persist.
“For now, one thing is clear: South Africa’s banks are actively granting more 100% and 100% home loans, helping more qualified buyers access the property market and supporting housing demand in a challenging economic environment,” says Dyer.
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