The first step to homeownership for young South Africans? Credit confidence
It represents independence, stability, something to pass on to loved ones one day. It's that dream you've cut out and pinned to your vision board or saved to your 'someday soon' Pinterest folder.
But if you've had a peek at Property24 lately and perhaps used its calculator to work out bond repayments, homeownership may well be feeling more of a fairytale than a plan. The market is tough; prices have climbed, interest rates are high, and monthly budgets are often already stretched by student loans, family responsibilities and the cost of living.
But Millennials and Gen Z don't give up on your dreams! Sanlam Credit Solutions has pulled together some tips and info to help these generations work systematically towards securing a place to call their own. It starts with the biggest hurdle: qualifying for a bond
Before you even start looking for a home, you need to get past the first gatekeeper - your credit score. And that's where many young people stumble.
'Creditworthiness is one of the biggest barriers to entry, especially for Gen Z,' says Afua Darko, Head of Business at Sanlam Credit Solutions. 'The 2025 Sanlam Credit Confidence Index shows that only 1.9% of Gen Z users on our platform have a credit score strong enough to unlock good offers. Among Millennials, it's around 37%.'
The Sanlam Credit Confidence Index is a data-driven snapshot of how financially prepared young South Africans are when it comes to credit. Based on insights from over 818 000 active users of the Sanlam Credit Solutions platform, the Index measures key indicators like financial wellbeing, resilience, and determination — helping to highlight common debt management challenges and opportunities for building stronger financial confidence.
That score is shaped by things like repayment history, debt-to-income ratios, and how long you've had credit - things younger buyers are still building up.
Yes, it's tough - but you're not out of the game
Urban property prices are soaring. Interest rates have more than doubled in the last few years. And many Millennials and Gen Zers are juggling other financial demands - from funding further studies to helping support extended family.
According to the Sanlam Credit Confidence Index, over half of Millennials and Gen X users are considered high credit risk. A concerning 165 000 Millennials are spending more than 50% of their income on debt repayments. That doesn't just affect savings - it can also make getting a home loan feel out of reach.
But young South Africans aren't just sitting back and waiting for things to get easier. They're changing how they approach the market.
New generation. New game plan.
Instead of chasing a city-centre apartment, many are looking at more affordable suburbs, smaller towns, or fixer-uppers they can renovate over time. Some are buying with partners, friends or siblings. Others are calling on parents to help with a deposit - a form of intergenerational wealth that's becoming more common.
They're also making use of digital tools that help track spending, monitor credit health, and compare property options - all on their phones.
'Young people are showing grit,' says Darko. 'They're learning, planning, and using every resource available. They're not locked out - they're just building a different route in.'
How to boost your chances: start with credit coaching
One of the most powerful steps young buyers can take is learning how to actively manage their credit profile.
Over 24 000 users have already taken up Sanlam Credit Solutions' free credit coaching - one-on-one sessions that offer personalised strategies for managing debt, improving scores, and fixing errors on credit records. The Sanlam AI-powered credit coach offers 24/7 analysis of credit reports, answers queries, and provides personalised recommendations, like improving a credit score, within an easy-to-use interface.
'The uptake is encouraging,' says Darko. 'It shows a shift in mindset - people aren't waiting until things are urgent. They're being proactive. They're saying: 'Let me get this right now so I'm ready when I need to be.''
Under serious pressure? There's still a way forward
For those in real financial difficulty, debt counselling is also becoming a smart option. It limits access to new credit in the short term but gives breathing room to restructure finances - and come back stronger.
Of the Millennials who engaged with Sanlam Credit Solutions about their debt, 56% chose debt counselling. That's not a sign of failure - it's a sign of taking control.
It can also free up income, making it easier to save for a deposit, avoid further debt, and move closer to your goal.
Same dream. Different journey
Today's young buyers know that owning property takes more than luck or inheritance. It takes planning. Patience. Long-term thinking.
They're reading up. They're asking questions. They're picking fixer-uppers over flash. And they're showing the kind of resilience that South Africans are known for - even when the odds feel stacked.
Start your credit confidence journey today
Whether you're months away from applying for a bond or just opening your first credit account, Sanlam Credit Solutions gives you the tools to build financial strength - with personalised coaching, debt management support, and real-time credit insights.
Click here to get started.
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