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Mortgage Default Behaviour in South Africa’s Low Income Homeowners Relates to Banks Borrower Education Programmes

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  • Viyusani Moss

Abstract

In investigating the non-payment phenomenon in South Africa’s low income households, a case study of Protea Glenx the researcher employed quantitative tools and qualitative methods. The rationale was prompted by high level of evictions and repossessions for non-payment of mortgages in the Protea Glen area in Johannesburg South Africa. The research approach was to measure and draw sample size from the units of population, conduct interviews and captureand analyse data through the use of SPSS as a suitable statistical instrument. Furthermore, the aim was to employ a suitable model for measuring the relationship between dependent and independent variables and also to highlight the limitations of the study. The findings of the study revealed several interesting empirical results that underpinning the importance of borrower education for mortgage account holders and the need by the banking sector to properly empower borrowers about credit behaviour, responsibilities and obligations of owning a property plus the ongoing costs of ownership.

Suggested Citation

  • Viyusani Moss, 2013. "Mortgage Default Behaviour in South Africa’s Low Income Homeowners Relates to Banks Borrower Education Programmes," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 2(2), pages 66-75, April.
    • Handle: RePEc:rbs:ijfbss:v:2:y:2013:i:2:id:432
    DOI: 10.20525/ijfbs.v2i2.150
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    References listed on IDEAS

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    1. Hartarska, Valentina & Gonzalez-Vega, Claudio, 2006. "Evidence on the effect of credit counseling on mortgage loan default by low-income households," Journal of Housing Economics, Elsevier, vol. 15(1), pages 63-79, March.
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