March results show higher bond approvals

March results show higher bond approvals

In March, the Average Purchase Price recorded by ooba showed a strong year-on-year price growth of 8.3% to R978 637, and a month-on-month increase of 2.1%.

The First-time Buyer’s Purchase Price also showed a healthy year-on-year growth of 6.8% and a month-on-month appreciation of 2.3% to R737 707. In March, 51.4% of ooba’s total intake of bond applications was from first-time buyers, which illustrates the increasing demand for property in this market.

The Average Approved Bond Size continues to show growth at R829 581, which is 5.8% higher year on year and 2.3% higher month on month.

ooba’s approval rate remains high at 76%, indicating that ooba continues to secure an approval for seven out of ten home loans that it processes.

“These stats show that the trend of growth in the property market is continuing, with strengthening property prices, and banks simultaneously gaining lending confidence,” says Rhys Dyer, ooba CEO.

Further good news for prospective buyers comes in the form of the Credit Amnesty recently announced by the Department of Trade and Industry, which came into effect on 1 April 2014, and will see credit records being scrubbed of all adverse information listed on that date. From now on, credit bureaus will also be required to automatically remove paid-up judgements and paid-up adverse information listing as soon as they are paid.

Dyer recommends that all South African citizens – but especially those who are pursuing lines of credit – should make use of their free annual credit check after 1 June 2014 to ensure that the requirements of the Credit Amnesty have been complied with by the bureaus.

“This also speaks to the benefits of using a bond originator like ooba for prequalification before you’re ready to make an offer on a home,” says Dyer. “Our free ooba qualification service incorporates a credit check and affordability rating so that when you make an offer, you can be confident that the banks will approve your bond.”

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