About property and home loans

BetterBond Home Loans data reveals an increase in the percentage of home loan applicants – a figure sitting at 5.06 percent in the 12 months to end of October compared with the previous 12 months, while the total value of those applications showed a 12.26 percent year-on-year (y/y) increase.

According to the mortgage originators, the approval rate on loan applications proves that using a bond originator gives one a better chance of obtaining a home loan in the shortest possible time.

They also point to the fact that the quality of applications has improved with BetterBond noting that they are able to assist applicants to gather all required supporting documentation before submitting an application to the bank.

That said, interest rates are currently at historical lows which means home loan finance is affordable and of course we are told it is a buyer’s market.

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Affordability is a key factor when it comes to obtaining the necessary finance for buying property and the fact is that many consumers today simply don’t have the affordability ratios required by the banks

The Secrets of Wealthy Individuals

One of the secrets of the wealthy is to make inflation work for them, not against them, as it does for the majority of people.

One of the secrets of the wealthy is to make inflation work for them, not against them, as it does for the majority of people.

Unfortunately, few South Africans really understand what inflation is, and the devastating effect it has on our financial futures, according to Dr Koos du Toit, chief executive officer of P3 Investment Group.

Du Toit explains that in September 2013, the annual inflation rate was 6 percent, just within SARB’s target range of 3 to 6 percent.

What this means is that it costs 6 percent more than it did last year to buy the same ‘shopping basket’ of goods and services.

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How will the Credit Amnesty Act affect the property market?

Despite industry objections to the removal of adverse credit information from the credit bureau databases, last month the Cabinet made the decision that all blacklisting will be removed from around 1.6 million consumers’ records. The decision to wipe the negative credit information was taken in an attempt re-enter these consumers into the market, which should, in turn, boost consumer demand and spending.

While this is good news for consumers who have paid all their debts but are still prevented from accessing further credit due to their bad credit listing, the credit amnesty bill may have the opposite effect in the housing market to what was initially intended, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

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