Record home loan approval rate in 2014

Private Property South Africa

The January statistics from ooba, South Africa’s biggest bond originator, show that the property market has entered the new year on a continuing high note, with its approval rate increasing by 3% year-on-year to 68.7%, which is the highest ratio on record since June 2008. Property prices and bond sizes are also showing steady growth.

The average purchase price recorded by ooba in January was R956 112, up 6.9% year-on-year and 2.4% month on month. The average approved bond was R801 391, 5.4% higher year-on-year, and 0.9% higher month-on-month.

January also showed strong activity in the first-time buyers segment, with the purchase price here showing year-on-year appreciation of 9.9% and month-on-month appreciation of 6.4% at R754 487.

The average approved bond size for first-time buyers was R650 000, which is 9.2% higher year on year. Of ooba’s total applications in January, 52.5% were from first-time buyers.

“Taken together, these statistics reflect a continued trend of healthy growth in the South African mortgage and property market,” says Rhys Dyer, ooba CEO. “It is extremely satisfying to see improvements in home loan approval rates, as this reflects that we are getting more of our clients into new homes than ever before, in line with the positive market conditions.

“As the market improves, and banks ease their lending criteria, it is making it easier for first-time buyers to enter the market.”

Looking to sell your home?
Advertise your property to millions of interested buyers by listing with Private Property now!
Find out more


Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Cotswold Downs Golf Estate
Find property for sale in the Cotswold Downs Golf Estate. Enjoy a blissful retreat from the city in a secure community enveloped by scenic landscapes
Win A Home Season 4 EP10: The Kitchen Challenge
For their next challenge, the Win a Home Design Duos have to cook up an exciting space. But, with a deadline looming, things might get too hot to handle in one of these designer kitchens.
Win A Home Season 4 EP10: The Kitchen Challenge
Exciting news is served up as our design duos receive their next challenge, plus a few generous gifts to help them cook up really amazing ideas that’ll hopefully be a recipe for success.
Debunking the Kitchen Island with Caesarstone
Nowadays the kitchen isn’t just the heart of the home, it’s the living heart of the home.