The number of people who cannot afford their monthly bond repayment is increasing in South Africa and causes concern in the industry.

The US home loan market experienced a crisis after 22 lenders in the US sub prime market has been declared bankrupt in the past two months. Household debt had risen sharply in the past few years but fortunately in South Africa; banks are more conservative than those in the US. Banks are not locked into a rate at which the loans become unprofitable.