Standard Bank says customers with home loans of less than R1.5 million have felt the most pressure from a rapid rise in interest rates.Home loans that the bank wrote in 2020 - when many of its peers switched off their lending taps - had been performing the best.Standard Bank says customers with home loans of under R1.5 million are battling the most with a rapid rise in interest rates that pushed up their bond repayments by more than a third.
Typically, households spend a maximum of around 28% to 30% of their income servicing their home loans. CFO of Standard Bank's Consumer and High Net Worth Clients franchise, Lihle Ngema, said on Tuesday"pockets" of customers with home loans of under R1.5 million were under the most pressure. "The average income in terms of our lending has been to people earning over R60 000 on a monthly basis," she added.
Ngema said that of those customers, people with salaries between R15 000 and R40 000 a month are under pressure now.