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Bullish on homeloans

According to an article on the market is unfazed by the perceived bottoming out of interest rates and the country's third general election.

FNB Homeloans CEO Ed Grondel, noting the ability of either event to have created market waves in the past, said the stability reflects its immunity from possible negative factors as in the past and further proof of the markets durability.

FNB enjoyed a 127 percent increase in intake and a 99 percent growth in registrations over the first quarter of last year. The total mortgage market grew by 19 percent in 2003 to R75 billion over that of 2002 and Grondel sees the momentum continuing this year, albeit at a slightly less hectic pace.

He remains bullish on the residential market and notes that transfers were still being slowed down by the issue of rates clearance certificates and by slow processing by some attorneys as a result of sheer volumes. Mortgage intermediaries, while generating huge volumes of requests for pre-approvals, only generated a conversion rate to actual home loan of about five percent.

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