50% Of home loans gets rejected last month

It seems like getting you home loan accepted in South Africa has just became much more difficult! Certain factors that contributes to this is of course the rising interest rates and the National credit act.

Bond Originator, ooba said that over 50% of the home loan applications were rejected by the banks last month (June 2008), up from just over 40% of applications made last year.

One should keep in mind that, while some applications gets rejected by certain banks, other banks does accept it sometimes. So it doesn’t mean that when one bank declines your application, other banks will not.

At the moment it looks like only FNB and Nedbank are still granting some 100% loans with other banks requiring deposits of between 10% and 20%.

ABSA bonds offers new fixed rate option

ABSA customers are now able to fix their Monthly Home Loan Repayment for up to 10 years.

The impact of rising interest rates is starting to have a marked effect on disposable income and confidence levels amongst home buyers this feature goes a long way in addressing this issues. Customers now have the ability to plan ahead for the next ten years.

MortgageSA changes to “ooba”

The very well known bond originators, MortgageSA has changed its name to ooba. That is ooba spelled with a lower case letter and not capital.

The shocking part of the whole insident is: The fact that they are paying R32 million to advertise the new corporate identity that is already being used by another company overseas. The name ooba is not a unique name and is actually the corporate identity of an overseas baby furniture making company. The colour scheme differs a little bit but the font is very much alike. Apparently, they are allowed to do this. According to the law, you may use another company’s logo if the company’s name isn’t well known.

One can only wonder why a big, well established company like MortgageSA would go and spend R32 million on marketing a new name that isn’t even unique.

MortgageSA’s explenation of the new name is that “ooba” is derived from universally used word uber, meaning “super”, “the ultimate”, “the best”.

ABSA and Barclays launches a new mortgage product

Barclays and ABSA has launched a new mortgage product that will allow UK citizens to buy property overseas and non-UK citizens to buy property in the United Kingdom.ABSA is the largest mortgage provider is South Africa. Together with Barclays the make the perfect team in providing expert mortgage advice and offer the best mortgage products for Barclays and ABSA costumers.

There are some aspects that affects the mortgage applicants like the foreign exchange control rate when they decide to purchase a property in a foreign country. For example, if a UK resident wants to purchase a property in a foreign country, they can only do so if Barclays or ABSA is present in that specific country. They will also need to comply with the exchange control rulings which states how much money you are allowed to take abroad. UK residents or any other resident, where Barclays is present can qualify for loans up to 50% of the total loan value in South Africa. Barclays international mortgages will introduce you to experts who will give you the necessary advice on tax implications, exchange control regulation, legal contracting across borders, credit lending policies and economic outlook on interest rates and exchange rates.

For international investors, whether they decide to buy a home in South Africa, a holiday home or just invest, will be given the necessary expert advice and guidance from ABSA international mortgage. They will also be given tools, designed and developed to best meet their needs.

South African residents who wish to purchase a home in the UK or any other territory where Barclays is present will be assured to be assisted by a reputable financial institute that has an established pedigree in financing international purchases.

Barclays and ABSA joined together are now your perfect solution for to international mortgages.

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