ooba’s Record Performance Trend Continues

ooba, South Africa’s biggest bond originator, has set a new record in April.

The value of home loan applications received and processed by ooba in April was 50% higher year on year, while the value of approved home loans was 30.5% higher year on year, ooba’s best performance in five years.

Saul Geffen, ooba CEO, attributes this considerable growth to ooba having doubled its market share, as well as to increases in the number of applications received, higher property prices, lower deposit requirements and increased home loan approval rates.

For the past six-month period, ooba’s approved home loans value was up 28.5% compared to the same period the prior year. The value of approved home loans in April was 317% higher than January 2009, ooba’s lowest month during the property and financial crisis.

“A number of positive changes have conspired simultaneously to drive ooba’s volumes significantly higher,” says Geffen. “There also seems to also be a strengthening in the property market, with the increased confidence filtering into increased volumes.”

“Based on independent market share figures, ooba has doubled its overall share of the market during the crisis,” Geffen adds.

Currently, one in every five South African homebuyers uses ooba to secure their home finance.

ooba obtains approval for 72.5% of the home loan applications it facilitates, comparing favourably with the average bank approval rate of 54% across the major lenders. “This essentially means that homebuyers have a 34% better chance of getting their home loan approved when using ooba,” says Geffen.

“A bond originator offers consumers a compelling value proposition. Increased probability of home loan approval, on better terms, all at no cost to them,” says Geffen.