ooba statistics continue to show consistent house price growth for 2013, reflecting the positive residential demand growth and better market fundamentals that prevail," said Rhys Dyer, CEO of ooba.
The average approved bond size is higher year on year by 3.9%, while the average deposit, at 15% of the purchase price, is higher both year-on-year and month-on-month by 31.6% and 2.7%, respectively. ooba statistics for August show that first-time buyers are placing a deposit of just under 10% on their new homes.
"The higher an applicant's deposit, the better their chances of getting bond approval and a favourable interest rate," said Dyer. "We always stress to any prospective home buyer that a deposit is critical to improving their chances of obtaining a home loan."
While the initial bank decline ratio is higher year-on-year by 1.8% to 48.4%, the ratio of applications declined by one bank, but granted by another has shown a year-on-year increase of 3%, to 28.8%.
"This shows that the value proposition that ooba offers - of applying to multiple banks simultaneously - really does assist applicants in securing their home loan," said Dyer.
ooba's effective approval rate, which takes into account those applications approved after month-end, is currently 74%, showing that ooba is obtaining approval for more than seven out of every 10 home loan applications it receives.
To improve home buyers' chances of securing home finance, ooba has also launched an expanded prequalification service called oobaqualified. This service provides a network of highly skilled pre-qualification experts located around the country to assist home buyers to access their credit report, assess their credit standing, calculate their affordability, compile the relevant paperwork and, within 24 hours, provide them with a prequalified loan certificate.
"Banks have a better appetite for extending credit to qualified buyers, and being prequalified allows buyers to shop in the right price bracket with the confidence that, in all likelihood, their bond will be approved," said Dyer. "It makes sense for any prospective home buyer to get oobaqualified before they start to look- and this is a free service."
| Indicator | Aug-13 | Aug-12 | Change yr on yr (Aug 13 vs Aug 12) | Jul-13 | Change month (Aug 13 to Jul 13) |
|---|---|---|---|---|---|
| Avg purchase price | 905,200 | 836,055 | 8.30% | 902,900 | 0.30% |
| Avg purchase price of first time buyer | 686,176 | 659,885 | 4.00% | 710,312 | -3.40% |
| Avg approved bond size | 769,847 | 741,166 | 3.90% | 771,300 | -0.20% |
| Avg deposit (as % of purchase price) | 15% (R135,353) | 11.4% (R94,889) | 31.60% | 14.6% (R131,600) | 2.70% |
| Avg age of applicant | 37 | 37 | No Change | 37 | No Change |
| Avg initial decline ratio (first bank decline) | 48.40% | 46.60% | 1.80% | 47.30% | 1.10% |
| Ratio of applications declined by one lender but approved by another | 28.80% | 25.80% | 3.00% | 29.90% | -1.10% |
| Effective approval ratio | 65.50% | 65.40% | 0.10% | 66.80% | -1.30% |
