Johannesburg - For prospective home buyers, 100% loans are scarcer than hen's teeth.

On Wednesday, Nedbank followed in the footsteps of other large banks by also sharpening its lending criteria on mortgages against the background of increasing economic and financial pressure.

The bank has adjusted its loan-to-value criteria and, whereas in the past it approved 100% loans in the up to R300 000 category, these consumers will now have to put down a deposit of 5%.

Mortgages on properties costing more are already subject to deposits.

Betterbond marketing director Deon Lessing says although there is still some activity between buyers and sellers in the housing market, it is becoming increasingly difficult to get a bond.

He points out that, in the first round of applications for bonds, between 25 and 30% are approved. "Arbitration then takes place, after which the percentage can move up to 50%."

The most important aspect for approval is a consumer's credit history, followed by affordability (whether the consumer can repay his debt).

Property analyst John Loos at First National Bank's home loan division expects that interest rates will come down in April next year, which will herald the beginning of a recovery in the housing market.

- Sake24