FNB creating the big waves in the Mortgages

Home Loan News

Although we have seen a number of new home loan providers entering the local mortgage industry, data supplied by the South Africa Reserve Bank show that SA’s Big Four Banks are continuing to take market share from the smaller banks.

Currently the SA Home Loans Market is begin dominated by Absa Home Loans, although FNB Home Loans have been making the most waves recently and are beginning to revival ABSA.

According to economist Nico Keller, Nedbank has been the major looser in the mortgage industry.

Keller believes that with their current growth in market share it won’t be long before FNB becomes the second-largest overall credit lender in South Africa.

“The money the FNB is borrowing to their clients is not covered by their deposits. This shortfall between their assets and liabilities is being borrowed from the likes for Standard Bank and Nedbank”, says Keller.

“FNB might need to look at their deposit-taking capabilities, as the cost of borrowing from depositors is usually less than to borrow from fellow bank.”