What is happening in the property market now? Q & A with Ooba
Category Home Buying/Selling Tips
With the property market bond stats are booming and home loan approval rates are reaching new high levels since 2007, we ask Ooba, South Africa's leading home loan comparison service, what does this mean for Buyers and first time home buyers applying for bonds?
1. What is the demand for bonds?
The banks are hungry for business and they are certainly granting buyers loans, provided their affordability and scoring is in order. "Banks continue to display a robust credit appetite and are increasingly approving home loans with a lower deposit and also increasingly with no deposit requirements," says Ooba CEO, Rhys Dyer.
2. Has the bond approval rate increased in the first quarter of 2019?
"Our home loan Approval Rate of 81.3% in the first quarter of 2019 was the highest on record for Ooba since May 2007 and importantly, the approval rate on applications without a deposit (100% loans) has increased by almost 8% on Q1 2018," says Dyer.
3. How easy is it to get a 100% bond?
If your credit history for the past 2 years is good the banks will certainly consider your application and they are currently granting the 100% loans. "More affordable property prices, coupled with reduced bank deposit requirements, higher approval rates and improved home loan pricing create a perfect opportunity for property buyers at present," says Dyer.
4. How easy is it for first-time buyers to get a loan?
The banks are happy to grant 100% loans to first time buyers provided their payment history for the past two years is to their satisfaction and also the property's affordability is in order. "Buyers, especially First-time homebuyers and buyers who do not need to sell to buy, should take advantage of the more affordable property prices together with the current positive lending environment and invest in property."
5. How easy is it to get a loan for self-employed buyers?
This will depend from bank to bank and will be decided on a loan-to-value ratio. "By pre-qualifying, prospective homebuyers can confidently make an accurate price offer on their dream property knowing that obtaining bond finance is a mere formality," says Dyer. Pre-qualification through Ooba's Bond Indicator (OBI) or Qualified Buyers Certificate (QBC) products available on Ooba's website.
So what does this all mean? With the banks' readily giving out home loans to those who qualify, it is clear that they hold a great deal of confidence in the property market as well as their clients' ability to repay these loans.
There is no time like the present to buy your next property.
Contact a Homes of Distinction area specialist if you are looking to sell or buy a property, why not contact us for an obligation FREE valuation?
Contact Louise Reiche
Tel: 082 331 7105
Email: louise@homesofdistinction.co.za
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Author: Lillian Rencken
