STANDARD BANK

Peter Schlebusch, Standard Bank's chief executive of personal and business banking, says the bank has increased its risk appetite, specifically to help first-time home-buyers in the lower-income bracket.

"People in this sector have been hit hard by higher inflation, job losses and the general slowdown in the economy," he says.

First-time homeowners who buy properties for up to R1 million and who use the property as their primary residence can now get a 104-percent loan. The extra four percent is to help buyers cover their transfer and bond registration costs.

Standard Bank is granting 100-percent loans to prospective homeowners who have a maximum combined household income of R15 000 a month. The bank is also granting 100-percent loans to people who buy properties for up to R1.5 million and who apply through the bank, as opposed to using a mortgage originator.

If you want to buy a home for between R1.5 million and R2.5 million, you will still need a 10-percent deposit. Home loans for more than R2.5 million will require a 20-percent deposit.

Standard Bank and Absa relax their lending criteria:

A relaxed lending environment is one of the biggest drivers of a recovery in the residential property market, says Saul Geffen, the chief executive of mortgage originator ooba.

In the past year, banks tightened their lending criteria and you were not able to get a home loan without first putting down a deposit of between five and 20 percent, depending on the price of the home you were buying. However, there has been a slight shift by banks. In the past two weeks, Standard Bank and Absa have announced that they will be offering bigger loans to prospective homeowners.

"We have seen increased competitiveness between the banks in the past four months and a marked increase in (home loan) approval rates across the board," Geffen says.

He says banks are targeting people who bank with other institutions.

"The move by banks to relax deposit requirements is a positive development for the property market," he says.