Stars align for first time home buyers

First time home buyers.
First time home buyers.
Image: Supplied.

For many South Africans, the dream of owning a home, was just that, a dream. The dream to own one’s own space is a universal one. Whether it be as an investment, as security, shelter or as a base to build a life, a family and a future.

At this moment in South Africa, we are in the thick of a buyer’s market and it’s a wonderful time to be a first-time home buyer. There is a perfect balance in the property market that favours the first time-home owner, creating an opportunity for a new generation of South Africans to realise their home ownership dreams.

Banks have adopted a robust appetite for lending. They’ve become more competitive – offering more accessible, more affordable loans. Banks are decreasing the average deposit requirements and in many instances granting significantly more bonds with no deposit required. A deposit has been a huge barrier to entry for many first-time home buyers. With a 0% deposit, this opens the way for many aspiring home owners to purchase their own home, without saving for a deposit. 

Qualifying for a 100% home loan means that a dream home can be bought immediately. The joy and investment opportunity that comes from owning a home is now within reach.

Rhys Dyer, CEO of ooba home loans says their home loan approval rate is the highest on record in nearly 12 years. 

“We have received the highest number of applications for buyers needing a 100% home loan. The approval rate on applications without a deposit has increased by almost 8%*,” said Dyer.

By shopping around to get the best interest rate, banks are also sweetening the deal with a slightly reduced interest rate to secure business.  Even a 0.25% lower interest rate means an almost R40 000 saving over 20 years on a R1 million home loan.  A saving that can be used for debt reduction, home improvements or travel.

Increases in the price of homes has remained below inflation resulting in falling housing prices in real terms. “In fact, for anyone receiving an inflation-linked salary increase for the last three years, a home is more affordable right now,” added Dyer.

As a bonus, interest rates have remained unchanged since November 2018, giving first-time buyers a sense of security that their monthly home loan installments will not skyrocket and they are able to remain within their budgets, and still own a home.

“ooba home loans works with the banks to get you the best deal on your home loan.  The home buyer doesn’t pay for the service of home loan comparison, the banks do,” says Dyer.

Dyer advises prospective home buyers to use ooba’s free home loan comparison services to shop around to get the best home loan deal. Prospective home owners can prepare and empower themselves by obtaining a home loan pre-qualification through ooba’s Bond Indicator (OBI) or Qualified Buyers Certificate (QBC) products available on ooba’s website at www.ooba.co.za

“By pre-qualifying, prospective homebuyers can confidently make an accurate price offer on their dream property knowing that obtaining bond finance is a mere formality,” concludes Dyer.

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