Terrible quarter

Bill Rawson, head of Rawson Properties, recently told Moneyweb that only about 2% of mortgage applications connected to Rawson sales had been approved since the beginning of the month,mainly because of the "shocking" and inadequate preparation by banks in implementing the National Credit Act. Other estate agents tell of a similar situation with many believing that the big four banks - ABSA, Nedbank, FNB and Standard Bank - have been erring on the side of caution, preferring to turn down applications and turn away clients.

All is not gloom, however, as Lew Geffen, chairman of Sotheby's International Realty South Africa, says that although it will take longer for buyers to obtain home loans, the certainty of offers will lead to fewer deals being cancelled for want of a home loan.

Articles on Moneyweb and RodneyHayter.com.