Engel & Völkers Licence Partner Stellenbosch > Blog > Elections are over and banks are keen to finance your home loan

Elections are over and banks are keen to finance your home loan

With the sixth democratic elections behind us, property experts believe the results will drive improved confidence in the property market. 

According to CEO of ooba home loans, Rhys Dyer, the election results will give President Ramaphosa the mandate to pursue the market-friendly reforms he needs to implement to drive job creation and growth in the economy. 

“Stability and confidence are key drivers of economic and property market stability and post elections, the country is poised for a return of confidence and economic revival,” he says.

There is renewed interest in the property market that favours the first-time homeowner, creating an opportunity for a new generation of South Africans to realise their homeownership dreams.

Banks are eager to lend. They’ve become more competitive – offering more accessible, more affordable loans. Banks are decreasing the average deposit requirements and in many instances granting significantly more bonds with no deposit required. A deposit has been a huge barrier to entry for many first-time home buyers.

A 0% deposit opens the way for many aspiring homeowners to purchase their own home, without saving for a deposit. 

Qualifying for a 100% home loan means that a dream home can be bought immediately. The joy and investment opportunity that comes from owning a home is now within reach.

By shopping around to get the best interest rate, banks are also sweetening the deal with a slightly reduced interest rate to secure business. Even a 0.25% lower interest rate means an almost R40 000 saving over 20 years on a R1 million home loan.  A saving that can be used for debt reduction, home improvements or travel.

Increases in the price of homes has remained below inflation resulting in falling housing prices in real terms. “In fact, for anyone receiving an inflation-linked salary increase for the last three years, a home is more affordable right now,” says Dyer.

“ooba home loans works with the banks to get you the best deal on your home loan. The home buyer doesn’t pay for the service of home loan comparison, the banks do,” says Dyer.

By Property 24 - 22 May 2019

See what a lower interest rate means to you, contact your bond originator, via Engel& Völkers

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