Credit and mortgage advances
South Africa - Absa
Uptick in household credit and mortgage balances growth
The value of outstanding credit balances in the South African household sector increased by 5,1% year-on-year (y/y) to R1 599,9 billion up to the end of September 2018 from growth of 4,8% y/y at end-August. Year-on-year growth in both secured and unsecured credit balances were higher at end-September compared with end-August.
The value of household secured credit balances (R1 223,1 billion and 76,4% of total household credit balances), which includes mortgage, leasing and instalment sales balances, increased by 4,5% y/y up to end-September compared with growth of 4,3% y/y at end-August. Growth in mortgage balances was up to almost 4% y/y at end -September (see below), with growth in instalment sales balances (R271,8 billion and 22,2% of total household secured credit balances) rising by 6,9% y/y in the 9-month period up to the end of September.
Growth in household unsecured credit balances (R376,8 billion and 23,6% of total household credit balances) accelerated further to 6,9% y/y in the period January to September, with growth in these credit balances that remained on a rising trend from 3,2% y/y in January this year. Growth in both general loans and credit card balances (together 88,2% of unsecured credit balances) was on an upward trend in the first nine months of the year, whereas growth in overdraft balances was down at end-August and end-September after being on a rising trend up to end-July.
Credit and mortgage advances (Sep 2018)
What to expect from residential mortgages by year end
South Africa - Rawson
Early 2018 brought good news for prospective homeowners as bond approval rates climbed from 2017’s 47% average to a much more encouraging 60% in March. Several political and economic hiccups have shaken things up since then, but according to the Rawson Property Group, the finance landscape remains very favourable for residential buyers.
“There are a number of interesting factors coming into play in residential property finance at the moment,” says Tony Clarke, MD of the Rawson Property Group. “The general market slow-down and decreasing consumer confidence seem to have put banks on the back-foot to some degree, and mortgage applicants are reaping the benefits in several ways.”
Rawson
Government urges property sector to crack down on money laundering
UK - Todays Conveyancer
Property professionals are being urged to report suspicious activity if they believe that money laundering could be taking place when buying properties.
A government campaign designed to crack down on criminals aims to help people working in the sector to spot the signs of money laundering, while reinforcing their legal and moral obligations to report suspicious activity.
The ‘Flag It Up’ campaign has been running since 2014 and has already targeted solicitors and accountants. It is now expanding its reach into the property sector. Not least because, between April 2017 and March 2018, estate agents submitted just 710 suspicious activity reports. In comparison, accountants submitted 5,036 reports, and independent legal professionals submitted 2,660.
Todays Conveyancer
Streamlined approach to settlement
Australia - The West Australian
From December 1, the Western Australian Government will require electronic conveyancing to be the standard settlement process in WA, replacing the time-consuming paper-based settlement process that’s been in use for more than a century.
When the mandate comes in, the onus will be on settlement agents across WA to convey properties online.
From a higher degree of security to the removal of human error, CS Legal Managing Director Richard Wensley said there were a number of positives stemming from using the firm’s chosen online property exchange platform, PEXA.
A property settlement practice, CS Legal recently completed its 1000th transaction using the system.
The West Australian
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