Home loan approval rate highest now compared to 10 years ago
The highest home loan approval rate in over ten years was recorded in the first half of 2018. This shows that banks have an increased desire to lend out money, according to the property statistics reflected in the latest “oobarometer”, by home loan originator ooba.
Home loan approval rate highest now compared to 10 years ago
Rhys Dyer, CEO of home loan originator ooba, said banks were showing a greater desire to lend out money. This was his comment on the property statistics reflected in the “oobarometer” for the first quarter of 2018.
“In the first quarter of 2018 we recorded the highest home loan approval rate in over ten years since the National Credit Act was implemented,” Dyer said. He added that “Consumers appear to be managing their debt much better and the current low-interest-rate lending environment, coupled with slower growth in property prices, means getting a bond for your home is a great deal more affordable now than it was 12 months ago.”
Ooba’s overall approval rate of 76.9% reflected an increase of 4.9% compared to the first quarter of 2017. Dyer said banks were increasingly willing to lend the full value of a property without asking for a deposit. This trend was evident in ooba’s quarterly statistics. For the first quarter of 2018, the median deposit for first-time home buyers as a percentage of prices was 12.5% compared to 14% in the first quarter of 2017. The average deposit over the whole market also dropped by 6.4% year-on-year.
