Silvertree Property News – Bond application & approval rates hit a 3 year high in March!!

Silvertree Property News – Bond application & approval rates hit a 3 year high in March!!

Sunday Times, July 31st 2011

According to bond originator Ooba, mortgage application & approval rates hit a 3 year high in March of this year thanks mainly to lenders loosening their approval criteria and interest rates remaining low.

When you couple that with data showing that property prices have not increased in the past 12 months the result is that it is a pretty good time to get into the property market if you have a credit record in good shape and some cash to put towards a deposit.

Ooba CEO Saul Geffen says if you’re in a position to take on a bond, the big retail banks ( FNB, Standard Bank, Absa and Nedbank) still offer home loans.

Major lenders have continued to relax their lending criteria in 2011. The average initial decline ratio fell to 47.1% year on year in May, indicating that an increased propertion of home loan applications are being approved.

The average deposit size in May also fell to 17.4%

This is still well below record approval rates in 2007 and there are now wide variances in the credit requirements and decline ratios across the banks, said Geffen

” This illustrates the importance of applying to multiple lenders”

The message is SHOP AROUND because while you may not fit the risk criteria for one lender, another may take you on!!

PLEASE ALSO NOTE THAT DEPOSIT REQUIREMENTS ALSO DIFFER WIDELY BETWEEN BANKS

Category : Property News

Leave a Reply

Time limit is exhausted. Please reload CAPTCHA.

property links

Legal and Conveyance


Send to Friend

Email Agent