Bond Approvals surge

Bond Approvals surge

South Africa's leading bond origination company, ooba, has seen a 55% increase in the value of approved loans from April to September this year, with a 21% surge from August to September alone.

"We continue to see a marked improvement in application volumes as well as increases in approval rates," says Saul Geffen, chief executive of ooba.

"ooba has recorded continued increases in the value of approved bonds for the past five months, and mid-month data points to a further 18% increase for October," continues Geffen. "If the 18% growth for October is achieved, it will mean an 84% growth in ooba's approved home loans since April."

The change in banks' lending criteria and the impact of the lower interest rates has resulted in an improvement in consumers purchasing ability. ooba has seen a surge in the value of approved bonds as improved affordability and sentiment translated into increased transaction volumes and approval rates.

There has also been an increase in average loan sizes as a result of the shift in banks lending criteria to lower deposit requirements, with all four big banks now offering 100% loans.

"One of the biggest drivers of a market recovery is bank lending and we have seen a marked increase in competitiveness between the banks," Geffen said.

"Banks are now targeting non-bank clients and rate concessions are becoming more aggressive. The improved appetite to lend will support the increased demand for property as transaction volumes continue to pick up." concludes Geffen.

Hello ooba news

The latest oobarometer stats reveal that the average purchase price growth among first-time buyers remains strong at 12.1% in June. This, together with the continued easing in lending criteria, is good news for potential homebuyers in South Africa.

With the property market beginning to show signs of a recovery, it is more important than ever to ensure your home is correctly priced. Jenny Rushin, property finance manager at ooba, SA's leading mortgage originator, said that a property listed at the right price will give sellers the greatest chance of attracting buyers.

South African banks have loosened their lending criteria which has supported a revival in the property market and helped new buyers enter the market says South Africa's leading mortgage originator, ooba.

South Africa's leading bond origination company, ooba, has seen a 55% increase in the value of approved loans from April to September this year, with a 21% surge from August to September alone.

With house price indicators like the oobarometer perking up, smart buyers are slowly returning to the market and need to be armed with how to make the best purchase possible. Ben Seymour-Brown, manager of group direct sales at ooba, said: "We expect more people to return to the property market this year and certainly next as the economy recovers, the effect of lower interest rates is felt and confidence returns to bricks and mortar investment.