Ooba’s stats point to record home loan approval rate
The Average Purchase Price recorded by ooba in January was R956 112, up 6.9% year on year and 2.4% month on month. The Average Approved Bond was R801 391, 5.4% higher year on year, and 0.9% higher month on month.
ooba's approval rate for January of 68.7%, showed a significant increase on December's approval rate of 65.2% and January 2013's rate of 65.7%.
"Taken together, these statistics reflect a continued trend of healthy growth in the South African mortgage and property market,"says Rhys Dyer, ooba CEO. "It is extremely satisfying to see improvements in home loan approval rates, as this reflects that we are getting more of our clients into new homes than ever before, in line with the positive market conditions."
These conditions are further indicated by the Initial Bank Decline ratio being lower both year on year and month on month at 44.7%, and the Ratio of Applications Declined by One Lender, Granted by Another showing a significant year-on-year and month-on-month increase of 4.5% and 4.3% respectively to 30%.
January also showed strong activity in the first-time buyers segment, with the First-time Buyers' Purchase Price showing year-on-year appreciation of 9.9% and month-on-month appreciation of 6.4% at R754 487.
The Average Approved Bond Size for First-time Buyers was R650 000, which is 9.2% higher year on year. Of ooba’s total applications in January, 52.5% were from first-time buyers.
"As the market improves, and banks ease their lending criteria, it is making it easier for first-time buyers to enter the market," says Dyer.
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