South Africa’s leading bond originator, recorded significant growth in home loan applications and approved loans in May.
The company’s latest statistics revealed that the Rand value of ooba’s home loan approvals showed a year-on-year increase of 50% during May. According to Saul Geffen, CEO of ooba, this is the best monthly performance recorded since April 2008. He says that May’s approvals were 221% up on ooba’s lowest approved loans month, being January 2009, but still only 32% of its peak month in May 2007.
In addition, the value of ooba’s applications in May was 20% higher than the same period last year, and 36% higher than April 2012. He says that the number of people applying for home loans is increasing, but is being outpaced by the value of home loans approved given improved lending conditions and increased bank competition. Geffen says that in comparison to the company’s historical best month, May 2007, applications are 45% of the peak levels.
According to Geffen, May’s statistics reaffirm the increase in first-time buyer activity that they have witnessed recently and that lending conditions are easing slightly.
Geffen says “ The consistent increase in applications and approvals over the past months is a positive indicator for the property market. There seems to be a marked increase in consumers’ sentiment and appetite for residential property and this has been underpinned by improved access to finance.”