select
|

BetterBond helps 36 000 families buy dream homes

October was a record month for BetterBond Home Loans, SA’s biggest mortgage origination group, with more than 3600 home loans being formally granted to homebuyers from whom the group had submitted applications to the banks.
 
“And that brought the total number of families we have helped to acquire their dream homes over the past year to more than 36 000,” says BetterBond CEO Shaun Rademeyer.
 
What is more, the total value of the bonds granted through the group in October was just over R3bn – or approximately 25% of the total monthly value of bonds currently being registered in the Deeds Office, which puts BetterBond well in the lead among SA’s originators, he says.
 
“It also reveals a very healthy recovery in the property market since the 2009 recession, when bond approval rates plummeted and we were only able to secure around R1bn worth of bonds a month for our clients.”
 
At that time, the total value of bonds registered nationally (according to the Deeds Office), was only around R5bn a month - down from a high of around R32bn worth of registrations a month during the boom years, when BetterBond was achieving around R6bn worth of grants a month.
 
Now Deeds Office figures show that the value of mortgages registered has totalled more than R10bn a month and has been trending upwards for the past two years, and all indications are that October’s final registered number will be a newhigh for the past five years, says Rademeyer.
 
However, the rate of growth in total household mortgage balances is currently only around 2,7% a year, so BetterBondis well ahead of the curve, having achieved a 21% year-on-year growth in the value of grants secured in the 12 months to end-August – and a 23,85% y/y growth the 12 months to end-October.
 
“In other words, the successes we have had in the past three months are not only indicative of the current higher demand for property, higher property prices and the banks’ greater willingness to lend, but also of the efficacy of our home loan origination procedures,” he says.
 
“Our latest statistics show that our 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 only 38% of applications submitted.
 
“At the same time, 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’saverage approval ratio to just over 75%.
 
“And what this means, in real terms, is that we are able to secure a bond approval for three out of every four homebuyers that apply for a loan through BetterBond – and around 30% .”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
        
    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