August 2015 Regional Infographic

BetterLife's regional real estate market figures for AugustProperty buyers are still taking home thousands of loans

In the past 12 months, more than R37 billion worth of homes have been purchased with home loans obtained through BetterLife Home Loans, South Africa’s biggest mortgage originator. These loans were given to more than 39 000 buyers, about 16 000 of whom were purchasing their first homes, explains CEO Shaun Rademeyer, with the average approved bond size being R791 000, 3.8% higher than in the previous 12 months.

A closer look at the numbers

According to Rademeyer, only 38% of buyers were able to secure a home loan without paying a deposit (a figure that has not varied for the past three years) and most of the homes purchased with these loans fell into the under-80sqm “affordable” category. For the remaining 62% of borrowers, the percentage of purchase price required as a deposit varied widely, depending on the cost of the property and the creditworthiness of the buyer, but most paid between 10 and 20%, he says. The BetterLife statistics, which represent 25% of all residential mortgage bonds being registered in the Deeds Office, also show that the number of home loan applications received showed year-on-year growth of 2.3% at the end of August, while the number of applications declined outright by the banks fell by a significant 14.9%.

Having a reputable bond originator on your side is a huge advantage

It’s important to note, though, that the decrease in the number of declined applications does not necessarily mean that the banks are lending more freely, or that it is getting any easier for prospective homebuyers to obtain home loans. “In fact, 49% of the applications for which BetterLife Home Loans obtained approval in the past 12 months were initially declined by at least one bank before being ‘rescued’ and approved by a different bank”, explains Rademeyer. This once again underlines the advantage, of applying for your loan through a reputable originator like BetterLife Home Loans. In this way, you’re guaranteed that your application will be prepared properly, motivated individually and that you’ll receive the best interest rate possible. “It is this meticulous process that has enabled us to sustain a 75% bond approval rate for the past 12 months when the industry average has been below 60%”, concludes Rademeyer.

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About BetterLife Home Loans

Since 2003 BetterLife Home Loans has been SA’s No.1 Bond Originator, handling the entire home loan application process on your behalf – free of charge! Our aim is still to source the best interest rate for you by submitting your home loan application to all the major banks. There is no easier way to apply for a Bond or Home Loan in South Africa!

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