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Property buyers are still taking home thousands of loans

In the past 12 months, more than R37bn worth of homes have been purchased with home loans obtained through BetterLife Home Loans, SA’s biggest mortgage originator.
 
These loans were made to more than 39 000 buyers, about 16 000 of whom were purchasing their first homes, says CEO Shaun Rademeyer, and the average approved bond size was R791 000, which was 3,8% higher than in the previous 12 months.
 
Only 38% of buyers were able to secure a home loan without paying a deposit – a figure which has not varied for the past three years – and most of the homes purchased with these loans fell into the under-80sqm “affordable” category.
 
For the remaining 62% of borrowers, the percentage of purchase price required as a deposit varied widely, depending on the cost of the property and the creditworthiness of the buyer, but most paid between 10 and 20%, he says.
 
The BetterLife statistics, which represent 25% of all residential mortgage bonds being registered in the Deeds Office, also show that the number of home loan applications received showed year-on-year growth of 2,3% at the end of August, while the number of applications declined outright by the banks fell by 14,9%.
 
However, Rademeyer notes, this does not necessarily mean that the banks are lending more freely, or that it is getting any easier for prospective homebuyers to obtain home loans. “In fact, 49% of the applications for which BetterLife Home Loans obtained approval in the past 12 months were initially declined by at least one bank before being ‘rescued’ and approved by a different bank.”
 
This once again underlines the advantage, he says, in applying for your loan through a reputable originator like BetterLife Home Loans, which will prepare your application properly, motivate it individually and ensure that you get the best interest rate possible.

“It is this meticulous process that has enabled us to sustain a 75% bond approval rate for the past 12 months when the industry average has been below 60%.”


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