Positive activity is being seen from first-time buyers, with bond originators saying that the bulk of recent applications have come from this category.
“The approval of bonds for first-time buyers is at its highest for three years, suggesting a good number of these applications are realistic in terms of what the applicants can afford, which bodes well for their bond repayments over time,” says Better Bond’s chief executive Carl Coetzee.
Property360’s home loan agent Celestine Williams says it’s not surprising given that the market is the best it has been in a long time for those wanting to enter it.
“The recent two rate cuts have meant interest rates are the lowest they’ve been in 50 years. In some instances making it more affordable to buy than to rent,” she says.