Applications for 100% home loans have seen an increase recently, with a greater extent being approved. At the same time, interests rates have dropped to 7% and are experiencing their lowest level in almost five decades. This climate could potentially offer the perfect conditions for first-time homebuyers, as well as property investors that have the desire and option to invest.
Recent data shared by Ooba Home Loans CEO Rhys Dyer, reveals that they have received an influx of 100% home loan applications, with volumes up by almost 68% in June. Nearly 80% of these were accepted. It is also worth noting that first-time homebuyer applications have gone up by 12%.
While the big banks have also weighed in on this recent development, with FNB and ABSA recently confirming to Business Insider SA, that they are extending 100% home loans.
Is this an opportune time to climb the property ladder?
The notable increase in 100% home loan applications, added to the latest slash in lending rates means that while seasoned investors could be snatching up property at unprecedented prices, buyers who previously could not afford to purchase a home are now able to enter the market for the first time.
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Statement by
Richard Gray
CEO Harcourts South Africa