Private sector credit extension grew 5.98% in August from the same month in 2016, accelerating from July’s 5.71%, the Reserve Bank reported on Friday. The portion of this representing mortgages to both households and corporations was R1.33-trillion, or 39.5% of total private sector credit balances of R3.37-trillion, Absa property analyst Jacques du Toit said in an e-mailed note on Friday. Corporate mortgage balances grew 8.5% to R414.9bn while household mortgage balances grew 3.1% to R913.1bn from January to August. Du Toit said he expected growth in household credit balances, including mortgage balances, to remain largely subdued until the end of 2017. Total household debt grew 3.4% to R1.52-trillion during the first eight months of 2017 from the matching period in 2016. Secured credit represented 76.9% of this total grew 3.4%, while unsecured credit grew 3.5%.
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