Comments on: New Home Loan Lending Policy for South Africa

By: Amos Mogorosi

Amos Mogorosi — Sat, 28 Aug 2010 18:30:53 +0000

Further loan for debt consolidation

By: Leon Jordaan

Leon Jordaan — Thu, 03 Jun 2010 10:32:49 +0000

The national credit act is killing the South African property market. It is almost impossible for a working family to obtain finance. A clear credit record and good standing with the bank counts absolutely nothing. Loans are declined on rediculous claims of affordability issues. I just sold my house to my tenant in Gauteng. After all running expenses is paid he has R12000pm for odds and ends, and still, even with the help of an originator his finance did not go through, based on affordability. I refuse to believe that ethnic group(as requested on the application form) is only for statistical purposes.No wonder why normal people have to leave South Africa and emigrate to New Zealand or Australia. The formal working class contributes 90% of all revenue. (That is 4mil people out of 44mil. This is not sustainable. How the hell can a working class person save money, live, pay taxes and buy property under the National Credit Act. I am well qualified and employed in the Financial sector, with an above average income, and even so, I can`t afford to purchase a property as some department in the bank decides that my affordability is not right. Then get told that banks are not in the business of negotiating. This whole exercise has put an end to my dream of owning property in the Western Cape where I now stay. I will become a tenant and get poorer, all because of the South African banks lending criterias. It`s time to get other forms of financing into Sout Africa and break the monopoly that the banks have, together with the NCR. You are killing our economy and the people contributing constructively towards it.

By: JSK

JSK — Mon, 24 May 2010 09:43:37 +0000

Oh and I forgot to mention that these policies were conveniently placed to assist those that were “previously disadvantaged” … *****

Think about it … who is really going to benefit from the policies placed by banks ….. let me tell you ….. the BLACK diamonds ONLY.

By: JSK

JSK — Mon, 24 May 2010 09:40:43 +0000

This is absolute nonsense by the banks. My opinion is that if a person qualifies for the bond of 108% or 110% give it to them because they can afford it. The reason the current economic crisis incl USA has happened was that the properties valued at R800K is predominently the properties that were repossessed save for those above the R5Million mark.

Again those that are a little above average in terms of income cannot purchase properties that they aspire to as they need ridiculously high deposits as well as transfer costs which will probably be in the region of R460 000 on a property worth R2.7Million.

By: Brennan Carey

Brennan Carey — Sun, 22 Jun 2008 12:02:58 +0000

Yes, as well as Nedbank and standard bank have also tightened the lending criteria. Makes it tough for sellers trying to find buyers and will put downward pressure on house prices. Trying to sell your house fast in the current market is gonna be difficult for many especially those that have little equity due to recent refinancing.

By: Buy My House

Buy My House — Tue, 20 May 2008 21:14:45 +0000

That would be cool to get a loan for 108% of a home. As long as you had a plan to pay it down in a year or so. This is what got the US into the trouble we are in today. People getting loans for 100% of the purchase price. Now the homes are not worth what they paid them for, they can not sell them fast and they can not afford it now. Good idea for them to change policy