Approved Home Loans on the Rise

October 28 - Good news for those who are thinking of purchasing a home in South Africa.

Top mortgage originator, ooba, noted that there has been a significant increase in the value of approved home loans in the country.

Statistics showed that between August and September this year, values jumped by 21% alone.

The total value from April to September jumped by a whopping 55%.

"We continue to see a marked improvement in application volumes as well as increases in approval rates," said the Chief Executive Officer of ooba, Saul Geffen.

Geffen said that the group had recorded increases in the value of approve bonds and predicted that further growth would translate to another 18% by the end of October.

"If the 18% growth for October is achieved, it will mean an 84%  growth in ooba's approved loans since April," he said.

One of the main reasons for this remarkable change in the home loan industry is the result of growing competition between South Africa's banks.

"One of the biggest drivers of a market recovery is bank lending and we have seen a marked increase in competitiveness between banks," noted Geffen.

"Banks are now targeting non-bank clients and the 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."

Banks are now focusing on offering lower deposit requirements, and South Africa's four major banks now offer loans at 100%.

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10/28/2009 8:52:32 AM