select
|

Consumers still hungry for homes and loans

According to the latest statistics released by BetterBond Home Loans, which is SA’s biggest mortgage origination group, the number of home loan applications received by the group increased by 5,06% in the 12 months to end-October, compared with the previous 12 months, while the total value of those applications showed a 12,26% y/y increase.
 
In addition, says BetterBond CEO Shaun Rademeyer, the total value of home loans formally granted through the originator showed a huge year-on-year increase of 23,85% at end-October – by contrast with the 2,7% y/y growth in overall household mortgage balances reported by the Reserve Bank at the end of the third quarter.
 
“This shows,” he says, “that there has been healthy increase in the demand for property over the past year, in spite of all the cost-of-living increases that consumers have had to contend with, and the fact that home prices have been rising (see table).
 
“Secondly, these figures indicate that applying for a home loan through an originator like BetterBond really does give prospective homebuyers a better chance of being granted that loan, with the value of bonds that we were able to secure for clients having grown at about six times the rate at which household mortgage lending grew in the general market.”
 
The BetterBond statistics also show that its initial decline rate (the percentage of applications declined by the first lending institution to which they are submitted) showed a y/y drop of almost 9% at end-October, to 38% of applications submitted.
 
“This speaks to the quality of applications we submit as well as an improvement in the banks’ willingness to lend,” Rademeyer says. “Being familiar with the banks’ application requirements, we assist clients to assemble all the required supporting documentation before submitting an application.In some instances we may also refer a client for credit repair before making an application.
 
“And of course we are able to motivate applications individually and submit them to a number of different banks if necessary.” Indeed, he notes, the ratio of applications declined by one bank but approved by at least one other showed a y/y increase of 18% at end-October, resulting in a 9,5% y/y increase in BetterBond’soverall approval ratio.
 
“In other words, we have been able to secure a bond for three out of every four applicants that have come to us in the past 12 months – and in real terms, we have been able to help more than 25 000 SA families fulfil their dreams of home ownership.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK