PROPERTY: ooba Reports Significant Loan Growth in February 2012
Recent Western Cape Business News
ooba, Cape Town-based bond originator, has recorded a significant increase in the number of home loan applications and approved loans during February 2012.
The company revealed that the value of home loan applications during February increased by 48% in comparison to February 2011. According to Saul Geffen, CEO of ooba, this is the best monthly performance recorded since March 2008, over four years ago, but is still 48% of the applications value recorded at the peak in May 2007.
The statistics also revealed that February was a record month for approved home loans. Geffen says that the value of approved home loans has increased by 32% year-on-year. “We have not seen these levels since May 2008, but these figures are still 30% of the value recorded in May 2007.”
He says that the average approved bond size also increased by 10.9% to R 738 835 in February 2012, from R 666 124 a year ago.
Geffen says that he expects growth to continue driven by ooba’s increased market share, as well as organic growth from the improved property market and lending conditions.
“In addition, low interest rates, coupled with subdued property price inflation and relaxed deposit requirements, has resulted in an influx of applications from potential homeowners.”
He also attributes the growth to the value proposition that mortgage originators offer consumers. “Consumers understand that in today’s tough lending environment, using a mortgage originator significantly enhances the chances of securing home loan approval and on better terms” concludes Geffen.
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