Bond Approvals Up

October 14 - Residential sales in the South African property market are definitely picking, with more and more bond approvals seen.

This is according to the Manager of Rawson Finance, Rob Lawrence, who says his group has seen a 60% rise in bond approvals month on month, in the June to September time period.

Another surprising factor is that regular applications for mortgages in the upper housing brackets are now being seen for the first time in a long period.

"Demand is still strongest at the lower middle end of the market, ie. from R700K to R1.2 million," said Lawrence, "but the upturn in the higher categories, where until recently most buyers were either paying cash or putting down 50% plus deposits, is encouraging."

Rawson Finance is not the only group to feel the improvement in the industry, with many others reporting on similar trends.

There are several reasons for this growth in mortgage approvals, according to Lawrence.

"Banks have to lend in order to make profits," he said. "After a prolonged period of almost no lending, the 'green shoots' of the recovery have encouraged banks to start actively canvassing for mortgage loans once again and nowhere is this more evident that in Standard Bank's decision on August 28th, once again to offer the major bond originators contracts."

In addition, the recession had many potential homebuyers put their plans on hold until the difficult period was over. Now that there is some relief in the economy, these buyers are flooding the market in search of homes and home finance.

Related Insurance Articles:
* Property Selling Tips
* Bond Approvals Up
* Jozi Home Market Still on the Slow Side
* Nedbank Relaxes Mortgage Requirements

10/14/2009 8:30:37 AM