More good news on the home loan front:

South Africa’s biggest bond origination company, ooba, announced on Monday that it has seen a 55 percent increase in the value of approved loans from April to September this year, with a 21 percent 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 percent increase for October," continues Geffen. "If the 18 percent growth for October is achieved, it will mean an 84 percent growth in ooba’s approved 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 percent 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.


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