ooba welcomes latest interest rate cut

ooba welcomes latest interest rate cut

ooba (formerly MortgageSA) welcomed today's interest rate cut of 1% announced today by the South African Reserve Bank.

The latest 1% cut in interest rates will save home owners an additional R710 a month on a R1m home loan over a 20 year period.

"The decision by the Reserve Bank to cut interest rates by one percent today is likely to be a key trigger for homebuyers," says Saul Geffen, chief executive of ooba (formerly MortgageSA).

The South African property market has experienced a marked slow-down from the beginning of 2008 due to a combination of factors including high interest rates, the introduction of the National Credit Act and tighter lending policies by the banks.

"We are hoping that banks will soon begin to relax their restrictive lending policies and this, coupled with home owners improved affordability, should begin to revive the property market," notes Geffen.

Recently ooba forecasted that the current low level of activity in the property market and negative property price growth with continue until mid 2009.

"However, the drastic interest rate cuts are expected to stimulate the property market in the short term and we expect to see house prices stabilise and move into positive territory by the first quarter of next year," concludes Geffen.

Savings

Bond amount: R350,000 R savings per month with 1% interest rate cut : R248

Bond amount : R500,000 R savings per month with 1% interest rate cut : R355

Bond amount : R1,000,000 R savings per month with 1% interest rate cut : R710

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.