South Africans are under increasing financial strain as rising costs and debt payments escalate, leading many homeowners to struggle with mortgage repayments. Data from credit bureau TransUnion reveals that 7.2% of homeowners are now three or more months behind on their home loan payments, reflecting a 20% increase year-on-year for the first quarter. The surge in financial distress is attributed to a steep 67% hike in interest rates, which rose from 7% in October 2021 to 11.5%, peaking at 11.75% for over a year. This rise has substantially impacted household budgets; for instance, monthly repayments on an R1 million loan have risen by over R3,000, and by R6,100 on an R2 million loan.

Salary increments have not matched these increased financial obligations, exacerbating the strain despite positive signs such as falling fuel prices, slowing food inflation, and potential interest rate reductions. CEO of Jawitz Properties, Herschel Jawitz, notes that even higher-income homeowners in affluent areas are now facing distress.

Jawitz encourages homeowners to proactively communicate with banks to explore support programs that allow repayment adjustments or voluntary sales before legal processes commence. Banks may offer solutions including repayment plans based on affordability or partial debt forgiveness if sale proceeds fall short. These measures aim to prevent the emotional and financial toll of repossession and enable homeowners to stabilize financially and potentially re-enter the market in better circumstances.