A GOOD credit record is the best way of improving your chances of getting mortgage approval, an expert says.

Adrian Goslett, chief executive of Remax of Southern Africa, outlined to Sowetan how consumers can better their chances of having a home of their own.

"Stricter lending criteria due to the National Credit Act (NCA) has been to a large extent blamed for the decline of the property market in recent years," he said.

"However, the truth is that the decline is not solely due to the NCA, but rather as a result of an amalgamation of various factors including recession, fluctuating interest rates, inflation and so on," said Goslett.

He said although it remained much more difficult to get approved home loans today, it was important to recognise that to a large extent it was the NCA that saved South Africa from going the same route as the US and UK when their property markets bottomed - out.

He said 100percent home loans were considered more risky, therefore, the lending criteria was stricter and the rate of approval thus much lower.

Goslett said the legislation dictated that the mortgage lenders may not grant a bond of which the monthly repayments are larger than one-third of the applicant's monthly net income.

Most banks qualify the applicant using the repayment to income of 30percent in conjunction with disposable income.

"This means the person with little outstanding debt will qualify for a considerably higher loan amount as they will have more disposable income," said Goslett.

He said banks also considered if the applicant had consistent proof of income, if not, approval was tough.