Deposits

Would you think it inappropriate if your bank made it a rule of thumb that you had to have a minimum of 25% deposit before they would finance your home?

Part of the problem that the "credit crisis" has highlighted is the extension of credit to consumers who could ill afford the gearing on a property portfolio.

South African consumers have long gotten used to the idea of paying between 0 and 10% deposits (which many of them grumble about).

These are the same people who are now seeing their houses being repossesed.

The flip side of that is that housing is a basic right and many people believe that banks MUST lend to them on terms that make it possible to house their families.

Do you believe it is your right to be able to get a loan without putting down a sizeable deposit? Would you be offended if your bank said you could apply for a loan by putting down a 35% deposit?

Give me your thoughts on what you believe is an appropriate level of deposit for the South African residential property market....