Banks are currently hesitant when it comes to approving 100 percent mortgages.

In a statement on Friday, estate agent Aida said first-time buyers in the Northern Cape's capital of Kimberley were having difficulty in accessing mortgages for any property above R450 000.

Banks are extremely reluctant

While units were available at between R585 000 and R599 000 and were attracting very strong interest, it was difficult to finalise these sales, the estate agent's Kimberley franchise said.

"The banks are extremely reluctant to approve 100 percent home loans," Kobus van der Walt, owner of the franchise said.

No deposit, no home loan

"The 104 percent loans that are spoken about apply only to people with a household income of less than R15 000 who are purchasing a home for less than R450 000," he added.

First-time buyers who did not have the cash for a deposit of at least 10 percent and transfer costs were finding it difficult to purchase a home as there was a lack of new stock at the right price and lack of finance for units at higher prices.

Activity where buyers have big deposits

Mortgage originator Betterbond confirmed that 104 percent loans were granted "only in the affordability range".

"This applies countrywide ? you have to earn less than R15 000 to get that sort of loan," Betterbond's Magda Olivier said.

According to Van der Walt, it was not surprising that Kimberley's most active market sector currently was the middle-income suburbs, "where the average house price now stands at around R900 000 ? and where most of the sales taking place are to second and third-time buyers who are able to pay cash or put down sizeable deposits."

Good credit record is vital

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Olivier added that accessing 100 percent home loans was not difficult if the customer had a good credit record.

"If the client is a good client then the bank will grant a 100 percent loan... Absa will grant this type of loan up to R1.5-million while Nedbank is prepared to go to up to R3-million".