Homeloan approvals up six per cent

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This is revealed in the latest statistics from BetterBond, which represent 25 per cent of all bonds registered in the Deeds Office, and cover homeloan applications made to all of the country’s major banks.

These statistics also show that the percentage of applications being approved by the banks has been rising, with the net result that the total number of homeloans approved in the 12 months to end-May, was six per cent up on the number approved in the previous 12 months.

BetterBond CEO, Rudi Botha, says that the number of bond applications being made each month is still well below the monthly highs that were being reached during the last boom, but their latest figures reflect a healthy improvement over the past year, that reflects a property market in recovery.

Other highlights of the statistics include the fact that there has been a 27 per cent increase in the number of home loan applications declined by one bank, but approved by another, thanks to the multiple submission process followed by mortgage originators.

“Almost a third (32 per cent) of the of the homeloans being approved now would not have succeeded without the help of a mortgage origination consultant, who was able to motivate it properly, and submit it to more than one bank.

“In addition, the statistics make it clear that the banks have increasingly diverse risk criteria, and may also be targeting different sectors of the home ownership market, so it is really worthwhile for prospective borrowers to enlist the help of a mortgage originator to select the most suitable homeloan package for their particular financial circumstances.”

He adds that this is further underlined by the fact that there has been a 24 per cent increase in the past 12 months in the number of applications being declined by consumers’ own bank, but approved by another financial institution.