Mortgage Applications Slowing

SA Home Loans News:

In September 2005, ABSA home loans experienced it highest growth in SA Mortgage Advances in over 20years. A combination of low interest rates and high consumer confidence sparked a boom in property which saw many first-time buyers enter the market.

IBO : Independent Bond Originators

Although interest rates have remained unchanged since then, ABSA Home Loans economists are reporting a slow down in the growth of mortgages.

Jacques du Tiot, ABSA senior economist, explains that the slower growth in the mortgage advances since October 2005 is probably a result of a slowing residential property market. He added that towards the end of 2005 many people were expecting an Interest Rate increase and the fears of higher bonds repayments would have caused them to think twice about buying a new home or applying for a second bond.

ABSA believes that mortgage payment will remain at its cut low rates, although the bank is not excepting a rate cut in the first quarter of 2006.

With rates this low and expected to get even lower later this year, you may need to consider applying for a variable home loan interest rate.

Complete this short form now to speak to a consultant and apply for a rate of up to 2% below prime.

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