The Homeownership Dream – Here’s How To Get Started

For decades, South Africans have argued over one question: is it better to buy a home or rent one? While the rental market has boomed thanks to a wave of new developments and office-to-residential conversions, Standard Bank’s recent data suggests many consumers are still choosing to put down roots.

The bank’s latest financial results show a strong appetite for homeownership, with its Home Services unit recording a 17% increase in home loan disbursements in the first half of 2026. The bank’s declining credit loss ratio also suggests homeowners are managing their 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 that are in a stable life stage, homeownership 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 adds that buying can offer long-term benefits as it allows consumers 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 homeownership is not just in the property itself – but in what it can enable over time. Often when people compare buying with renting decisions 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,” adds 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. But 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 many consumers face affordability pressures in the short-term, even if they see the value of owning their homes early. He says affordability remains one of the biggest hurdles for aspiring homeowners, causing many people to believe they need to wait years before buying a property.

“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 and use the equity you’ve built to buy your dream home,” says Coulter.

He adds that Standard Bank offers financial support to first-time homebuyers. These include benefits such as a 50% discount on bond registration fees and financing of up to 108% of the property price to help customers cover related transfer and registration costs. Standard Bank also provides the tools to help customers understand what they can afford.