Home Loans News:
House prices boomed as the number of individuals looking to purchase a new home increased. The low interest rates enabled a large number of people to invest in property for the first time.
The major players in the home loan industry have also assisted in promoting homeownership in South Africa. ABSA was one of the first banks to roll out a home loan product which has been specifically setup to accommodate the low-income groups.
And while Banks have been receiving record numbers of Home Loan applications, mortgage originators were further establishing themselves in the SA home loans process. SA Mortgage Originators are a major source of new business to Banks, because they offer customers the opportunity to apply to a number of home loan providers through a single point of contact.
But, if 2005 was the year for the originator and banks, 2006 has already been predicted as a year for the Home Owner.
The number of Home Loan Providers in South Africa is expected in increase over the next 12 months â€“ further driving the competition among the Banks. This competition will filter through to the customer as each bank attempts to attract new business through better Home Loans products or more competitive lending rates.