MORE HOME LOANS FOR FIRST TIME HOMEOWNERS
Category Residential Property News
There's been a steady increase in the number of home loans being approved for first-time homeowners. It's good news!
Rhys Dyer is CEO of ooba bond originators, and he explained - from the banks' perspective - exactly what is happening: "In the first quarter of 2019, ooba statistics showed a 5% increase in the first-time homebuyer segment purchasing property, and it is expected that this trend will continue as first-time homebuyers take advantage of property prices becoming more affordable." According to ooba's latest statistics, house price appreciation in this first-time homebuyer segment remains below inflation. Importantly, over and above more affordable property prices, says Dyer, "first-time home buyers are also benefitting from higher bank approval rates."
So, the banks are saying Yes to more people applying for home loans. Dyer explained, "Banks continue to display a robust credit appetite for this segment, and are increasingly approving home loans with a lower deposit and also, increasingly, with no deposit requirements.
"Ooba's current approval rate of home loan applications without any deposit is the highest we have seen for over 10 years. Banks are competing for business in this segment and are making credit accessible at cheaper interest rates, all of which creates a perfect opportunity for first-time home buyers to invest in property." According to ooba's latest statistics, the average bond size for first-time buyers is R856,079.
Author: Anne Schauffer
