Be savvy about bond finance
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.