South African home buyers have a reason to smile after BetterLife Home Loans released new data showing that more home loans are being granted in the higher price ranges.
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The group pointed to a substantial increase over the past 12 months in the percentage of home loans being granted for more than $60,800.
This was after StatsSA announced a contraction in the local economy by 0.3% in the fourth quarter of last year, while muted growth of around 1% is projected for 2017.
BetterLife said that of the loans granted in the price brackets above $68,400, the biggest share (26%) went to home buyers who purchasing for between $68,400 and $114,000, 15% to buyers in the $114,000-$190,000 category and 6% to those purchasing for more than $190,000.
The CEO Shaun Rademeyer saw this as a strong indicator of the increasing confidence that buyers in these higher price ranges have in the property market, especially since the lot of them happen to repeat buyers who are committing large amounts of their own money to these transactions.
The data also affirmed this in the increase in the percentage of loans granted to buyers with deposits of 40% or more has risen over the past two years from 11.5% to 13.2%.
The percentage of loans going to buyers paying deposits of 10% to 20% of the purchase price has reportedly declined, from 24.3% to 22.5%.
The latter consists of mostly first-time buyers in their 20s and early-30s that have a monthly household income of $1,140 – $3,040 with financial pressure, making it difficult for them to qualify for home loans.
BetterLife Home Loans is the largest mortgage originator in South Africa, with more than 15 years’ experience in helping home owners purchases their dream homes with a track record of success rate above 72%.
The open markets less than 35% cannot hold a candle to established preferential relationships with the country’s biggest banks, and a number of major estate agency groups.
They are not only privy to exactly what information is required by each bank to make a successful application, but also help guide you through every step of the home buying process, so you know what to expect.
