Property 24/10 - 550

No deposit? You're more likely to qualify for a 100% bond than ever before
Low interest rates and pandemic-driven lifestyle trends continue to boost housing demand as bond originator data shows some 61% of approved loans we made without a deposit.

First quarter statistics released by ooba, South African home loan comparison service, show continued robust growth in the residential property sector, despite a year dominated by the Covid-19 pandemic and the ensuing economic fallout.

“The unprecedented low cost of borrowing coupled with the major banks’ appetite to take on low or no deposit loans have created an ideal buying environment, particularly for first-time buyers” says Rhys Dyer, CEO of ooba. During the first quarter of 2021, ooba successfully obtained home loan finance for 80.7% of its applicants, 61% of whom required a zero-deposit loan. Q1 2021’s approval rate across first-time buyers who required a zero-deposit loan was 79.3%.

Want to get pre-approved for your bond? 4 simple rules for a good credit score
Buying a new home is an exciting and emotional decision - but it should also be an informed decision. One way of making your property ownership dreams come true is by ensuring you a good credit score.

“With record-low interest rates, affordability levels have increased and more aspirant buyers can now afford to apply for a bond for their dream home. Having a good credit score is one of the most important things that banks look at when considering home loan affordability,” says Carl Coetzee, CEO of BetterBond.

There are a few simple rules that will ensure your credit rating is in good shape before you apply for a bond.

Build gradually
The best way to have a good credit record is to build it up over time, says Coetzee. “In this case, having debt can be a good thing - provided you manage it well. This means having clothing or other retail store accounts, cell phone bills, car payments or personal loans. If you have been careful about paying on time and covering at least the minimum amount every month, these accounts will contribute positively to your credit rating.”

3 free services to help you get your finances in order
Take control and ensure you're on the right path to getting out of debt. South Africa's Credit Ombud shares tips on how to tap into the privileges provided for you in the National Credit Act.

Young people in South Africa often hear how their parents struggled to get basic human rights. People of colour were not free to enter any store which they wished to make a purchase; therefore, you can only imagine what the criteria was for them to be able to apply and qualify for credit not to mention being treated fairly in the credit industry.

Previously there were not many opportunities, less advancements in life, and less protection to consumers, there was not much hope. But now we have been given freedom. We have the right to apply for credit, consumers have protection against discrimination in respect of credit, right to reasons for credit being refused, right to information in an official language, right to receive documents, and protection of consumer credit rights. Therefore, we can confidently proclaim that hope has been restored and dreams are being turned into reality and do not end as just an illusion.

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