Banks are being generous to home loan applicants

DESPITE the ongoing upheaval caused by the pandemic, coupled with the recent civil unrest in KwaZulu-Natal and Gauteng, lending conditions remain advantageous to home loan applicants.

Rhys Dyer, chief executive of ooba, says the pandemic has drastically changed consumer behaviour, as well as banking trends, resulting in a surprising boom in the local residential property market over the past 12 months.

“Continued competition among the major banks for a bigger share of the home loans market has translated into higher approval rates as well as offers of attractive interest rates below prime. Added to the mix, local interest rates remain at their lowest level in 50 years.”

These factors combined, he adds, suggest that home buying and mortgage lending have to date remained relatively immune to the pandemic.

“The local banking industry also appears to be optimistic about the future of the South African residential property market. The current lending landscape remains fiercely competitive, which is evidenced in the softening of their deposit requirements and their approvals at interest rates on average below prime.”

Home buying and mortgage lending have remained relatively immune to the pandemic PICTURE: TOWFIQU BARBHUIYA/UNSPLASH