Record home loan approval rate in 2014

Private Property South Africa
Press

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.”

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