Be savvy about bond fi­nance

Business Day - Home Front - - HOMEFRONT -

HOME LOANS A great deal of bond orig­i­na­tors have re­cently re­leased sta­tis­tics show­ing that home loan grants have in­creased to 20% year on year. This is a def­i­nite in­di­ca­tion of the prop­erty mar­ket pick­ing up. Even though the grants have in­creased, the num­ber of ap­pli­ca­tions be­ing de­clined has also some­what in­creased.

Bank sta­tis­tics have showed that over the last few months 100% home loans have dropped sig­nif­i­cantly by 20% of all ap­pli­ca­tions ap­proved. This does put pres­sure on house prices and the prop­erty mar­ket in gen­eral.

“Even though Basel III has not yet come into play, you can def­i­nitely feel that banks are tight­en­ing up their lend­ing cri­te­ria,” says Sandy Reddy, Head of Orig­i­na­tion of EV Fi­nance. “As banks have tight­ened up their lend­ing cri­te­ria it is im­por­tant to know your credit sta­tus and be in con­trol of it, es­pe­cially when it comes to ap­ply­ing for a home loan. Banks are even more cau­tious now than what they were a few years ago. If dur­ing the last 6 months you skipped a pay­ment on any of your ac­counts, for in­stance even on a cloth­ing ac­count, your chances of ob­tain­ing a 100% loan will drop to nil,” says Reddy.

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