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More blacks applying for home loans

Jul 17 2012 15:37 Fin24

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Johannesburg - Almost half of all home loan applications are now being made by black buyers, statistics from BetterBond show.

BetterBond represents 25% of all residential mortgage bonds registered in the Deeds Office.

The number has increased significantly compared with only about 12% a decade ago.

The statistics indicate that black home buyers accounted for approximately 48% of all bond applications in the past three months.

Futhermore, black home buyers accounted for between 37% and 39% of approved monthly home loans.

"It is very encouraging to see such an increase in the number of black buyers coming into the market and achieving bond approval, especially in the light of the slowing economy and slow progress on job creation.

"It suggests a growing appreciation of the wealth creation potential of home ownership," said BetterBond CEO Rudi Botha in a statement.

"It is also a clear indication of the effect that the current shortage of good rental housing stock and rising monthly rentals are having on the market, in that more and more tenants are seriously considering that it might now be cheaper to buy than to rent and exploring the possibility of becoming homeowners in their own right.

"This trend is being further fuelled by the current low interest rates and by improving access to bond finance, especially for first-time buyers," Botha said.

The BetterBond numbers also reflected an overall 5% uptick in the number of home loans made in June.

 
property  |  home loans
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